The French economy could be on an upward trend

The French economy could be on an upward trend

Good news from the French bank governor.

At the beginning of the pandemic and when the lockdown measures were imposed, several European countries like Italy, Spain, and France took the biggest hit.

At the end of May, France announced its expectations regarding the future of the economy. At that time, Finance Minister Bruno Le Marie expected the economy to shrink by 11% after the government had predicted a GDP contraction of 8%. According to their forecast, the economic recovery would have started at the end of the year, and gradually going up in 2021.

At that time, Le Marie tweeted that "The economic shock is brutal," but it seems that the measures that have been taken were inspired. He declared that the government would continue to maintain the lower taxes on households, with no later dramatic increase in taxes on citizens that could lead to the payment of an expansive coronavirus bill.

More good news came at the end of June, when the French economy grew for the first time in four months, as the Purchasing Managers' Index reached 51.3 in June from 32.1 in May. According to specialists, the sharp recovery suggests that the GDP will not be as catastrophic as initially people feared. Its central banks estimated that the economy would function below average by 12%.

But because a second wave is nigh, a return to the pre-pandemic levels will take some time. Yesterday, the Bank of France Governor, Francois Villeroy de Galhau, stated that the French economy is recovering faster than expected a month ago.

More about the matter will be released on Tuesday by the Bank of France.

Currently, the French benchmark, France40, is trading higher by more than 1.30%.

Read more about the damages the pandemic made on CAPEX.com

Sources: reuters.com, markets.businessinsider.com, edition.cnn.com


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.