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dpa
Paris
France has lost about 35 percent of its economic activity as a result of the country’s coronavirus lockdown, national statistics bureau INSEE said on Thursday.
Every month of lockdown is likely to result in a loss of 3 per cent of annual gross domestic product (GDP), the bureau estimated in an economic forecast taking account of the epidemic.
France implemented a strict lockdown on March 17 for an initial 15-day period.
But with more than 25,000 confirmed infections and 1,311 deaths as of Wednesday, government health advisers have said it is likely to be extended until late April.
All workers who can have been instructed to work from home, and some major employers such as carmakers Renault and PSA have shut down plants citing supply chain and health issues.
Economy Minister Bruno Le Maire said on Wednesday that “we all know” the GDP loss would be “much more significant” than the minus 1-per-cent growth estimate included in a mini-budget last week.
INSEE estimated that the construction sector was down 89 per cent in terms of activity, with non-food industry down 52 per cent, traded services down 36 per cent and non-traded services down 14 per cent.
The French government has appealed to “vital” sectors of the economy to keep going despite the lockdown.
It has promised 45 billion euros (49.5 billion dollars) in immediate aid to firms and workers hit by the crisis, as well as a 300-billion-euro guarantee for commercial bank loans.
Meanwhile, the country’s public transport capacity was cut sharply back as the lockdown went into its 10th day.
State railway company SNCF said only 40 TGV high speed trains would run countrywide, 7 per cent of the usual service which has already been cut back sharply in recent days.
The Paris metro was also running a reduced schedule with an early shut-down at 10 pm (2100 GMT).
The smaller of the capital’s two main airports, Orly, is due to shut down with effect from 11.30 pm on Tuesday.
Airlines have drastically reduced their schedules and France, like other European Union countries, has banned the entry of most non-EU citizens who are not already legal residents.
Paris
France has lost about 35 percent of its economic activity as a result of the country’s coronavirus lockdown, national statistics bureau INSEE said on Thursday.
Every month of lockdown is likely to result in a loss of 3 per cent of annual gross domestic product (GDP), the bureau estimated in an economic forecast taking account of the epidemic.
France implemented a strict lockdown on March 17 for an initial 15-day period.
But with more than 25,000 confirmed infections and 1,311 deaths as of Wednesday, government health advisers have said it is likely to be extended until late April.
All workers who can have been instructed to work from home, and some major employers such as carmakers Renault and PSA have shut down plants citing supply chain and health issues.
Economy Minister Bruno Le Maire said on Wednesday that “we all know” the GDP loss would be “much more significant” than the minus 1-per-cent growth estimate included in a mini-budget last week.
INSEE estimated that the construction sector was down 89 per cent in terms of activity, with non-food industry down 52 per cent, traded services down 36 per cent and non-traded services down 14 per cent.
The French government has appealed to “vital” sectors of the economy to keep going despite the lockdown.
It has promised 45 billion euros (49.5 billion dollars) in immediate aid to firms and workers hit by the crisis, as well as a 300-billion-euro guarantee for commercial bank loans.
Meanwhile, the country’s public transport capacity was cut sharply back as the lockdown went into its 10th day.
State railway company SNCF said only 40 TGV high speed trains would run countrywide, 7 per cent of the usual service which has already been cut back sharply in recent days.
The Paris metro was also running a reduced schedule with an early shut-down at 10 pm (2100 GMT).
The smaller of the capital’s two main airports, Orly, is due to shut down with effect from 11.30 pm on Tuesday.
Airlines have drastically reduced their schedules and France, like other European Union countries, has banned the entry of most non-EU citizens who are not already legal residents.
