France's economy may not survive the coronavirus. Latest statistical data confirms that France has not faced such a crisis since World War II.
The coronavirus pandemic has walloped almost all the branches of business and industry. COVID-19 has caused enormous damage to all sectors of the economy. Some of them will hardly be able to reel from the losses soon. Their recovery may take years. When compared to other European countries, France undoubtedly tops the list of the hardest-hit regions. All major economic indicators turned out to be highly negative. France's GDP slumped a record 13.8% in the second quarter. During the reporting period, consumption fell by 11%, investment decreased by 17.8%, while exports plunged by 25.5%. Local and outside analysts agree that there is no point in counting on a quick recovery, and the annual losses are likely to be double-digit as well. For example, the Organization for Economic Co-operation and Development (OECD) expects France's GDP to decline by 11% this year. However, some indicators are anticipated to grow. According to analysts, the unemployment rate could surge to a record 11.5% by the middle of next year.
The main reason for such a challenging economic situation is France's two-month lockdown, the longest quarantine in Europe. Germany, for example, started to lift coronavirus restrictions in a month and its GDP contracted by 10.1% from the previous quarter.
