The new confinement applied in France since Friday, October 30 will undoubtedly have negative consequences on the economy. However, its impact should be less significant than last spring.
Last March, France was shut down. Consequence: unemployment explodes (+ 24%), the GDP (gross domestic product) falls (-14%). But, at the end of the summer, the French economy regains color. With this new confinement, the numbers will worsen again. Will they be, however, also catastrophic? Not so sure. “We are aiming for a slowdown in activity that is half as much as in the spring,” announced Bruno Le Maire, Minister of the Economy, Finance and Recovery.
Activity continues in some sectors
The pattern is indeed not the same. Certain sectors are authorized to exercise, such as construction, agriculture and industry. And health protocols allow everyone to adapt. The children continue to go to school, which allows their parents to work more calmly. On the other hand, catering, tourism and the entertainment world will be hit hard by this second wave. In all, the State will spend 15 billion euros to support the economy at the end of the year.