24 days ago • Posted by William Ramstein

France enters recession with negative Q1 GDP growth

France's gross domestic product shrank by 0.1 percent on quarter in the first three months of 2021, compared with an initial estimate of a 0.4 percent growth and following an upwardly revised 1.5 percent contraction in the previous period. Revised data points that the euro zone's second biggest economy entered a recession. The evolution of GFCF in construction in Q1 2021 fell to 0.6 percent from 5.1 percent. Considering 2020 as a whole, the GDP plunged 8 percent, less than earlier estimates of an 8.2 percent slump. Finance Minister Bruno Le Maire expects the economy to grow 5 percent in 2021 as stay-at-home order is now being slowly lifted. Still, latest data showed household consumption, the driving force of France's economic activity, fell 8.3 percent in the first month of Q2.

Source: Trading Economics