During the second quarter of 2020, France’s GDP registered a year-over-year growth rate of -18.91%, after registering a sharp decrease with respect to the previous quarter. This behavior follows the trend observed globally resulting from the COVID-19 virus and the measures carried out to contain its spread. As for the labor market, the unemployment rate decreased with respect to the first quarter of the year, down to 7.00%, while the employment growth rate decreased when compared to 1Q20, down to -2.53%. On the other hand, inflation stood at a 0.30% rate, after recording a deceleration when compared to the previous quarter. The euro remained constant against the dollar at an exchange rate of 1.10 $/€ during the second quarter.

 


Macroeconomic outlook report: France 2Q20

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Macroeconomic Overview

  • During the second quarter of the year, the French economy registered a sharp decrease of 13.23 p.p. with respect to the previous quarter, falling to a rate of -18.91%.
  • The Covid-19 pandemic heavily affected the domestic demand, which partly explained the sharp decrease registered in the French GDP.
  • Regarding the labor market, the unemployment rate decreased by 0.60 p.p. with respect to the previous quarter down to a rate of 7.00%; while the y/y growth rate of employment decelerated by 2.73 p.p., down to a -2.53% rate.
  • The euro remained constant against the dollar, and stood at an exchange rate of 1.10 $/€ during the second quarter.
  • Inflation registered a 0.30% rate, after a decrease of 0.90 p.p. when compared to the previous quarter.

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