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Macroeconomic outlook report: France

First quarter of 2020

During the first quarter of 2020, France’s GDP registered a year-over-year growth rate of -4.99%, after registering a severe decrease with respect to the previous quarter. This behavior follows the trend observed globally as a result of the COVID-19 pandemic and the measures carried out to contain its spread. As for the labor market, the effects of the health crisis are not yet visible; the unemployment rate decreased with respect to the fourth quarter of previous the year, down to 7.60%, while the employment growth rate increased when compared to 4Q19, up to 0.20%. On the other hand, inflation stood at a 1.20% rate, after recording an acceleration when compared to the previous quarter. The euro slightly depreciated against the dollar, reaching an exchange rate of 1.10 $/€ during the first quarter.

Macroeconomic Overview

    • During the first quarter of the year, the French economy registered a severe contraction of -5.87 p.p. with respect to the previous quarter, falling to a rate of -4.99%.
    • The Covid-19 pandemic heavily affected the domestic demand, which explained the sharp decrease registered in the French GDP.
    • Regarding the labor market, the unemployment rate decreased 0.20 p.p. with respect to the previous quarter reaching a rate of 7.60%; while the y/y growth rate of employment accelerated by 0.16 p.p., up to a 0.20% rate.
    • The euro slightly depreciated against the dollar, and stood at an exchange rate of 1.10 $/€ during the first quarter.
    • Inflation registered a 1.20% rate, after an acceleration of 0.10 p.p. when compared to the previous quarter.

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    © GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.