Economic activity in France has fallen to 65% of the normal level

Economic activity and household expenses of France are at about 65% of normal due to the outbreak of coronavirus, said the official statistics Agency Insee, Reuters reports.

In Insee revealed picture of the impact of the national restrictive measures, publishing a monthly business confidence index, which showed the biggest drop since the beginning of records in 1980.

According to the statistical Agency, in March the index fell to 95 from 105 points in February, and an even sharper decline is observed in the sectors of services and retail trade.

the French government has prepared a package volume of 45 billion euros — 2% of GDP — crisis measures, consisting mainly of deferred taxes and levies on wages for companies, and payments companies who transfer employees to a shorter working day.

in addition, the government will guarantee up to 300 billion euros — 15% of GDP — corporate loans from commercial banks to sustain the flow of credit to the economy.

experts of the Insee, said that it was too early to try to predict how deep the recession would be, figuring that each month of the restrictive measures will reduce economic activity by 12 percentage points quarter-over-quarter and 3 percentage points in annual terms.

last week, under extreme changes in the budget law, the government took into consideration that the country’s economy is in the closed state, and this year the economy will shrink by 1% instead of rising by 1.3%, had previously forecast.

since then, However, Finance Minister Bruno Le Mayor warned that the recession is likely to be much worse, comparing it with the great depression of 1929.