France sinks deeper into recession, with 14% GDP hit in 2Q

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France’s financial system shrank by nearly 14% within the second quarter when the nation was in coronavirus lockdown, the nationwide statistics workplace INSEE mentioned Friday.

It was the third consecutive quarter of financial contraction. According to the INSEE, the plunge of 13.8% from April-June comes after the nation’s GDP shrank 5.9% within the first quarter of 2020, and 0.1% within the fourth quarter of 2019.

Imports in Q2 dropped 17.3%, after dropping 5.5% in Q1, whereas exports crashed 25.5%, after retreating by 6.1% within the first quarter. Household consumption dropped by 11%, and firm funding dropped by 17.8%.

“The negative trend in GDP in the first half of 2020 is linked to the cessation of ‘non-essential’ activities in the context of the containment implemented between mid-March and early May”, the workplace mentioned.

It added that “the gradual lifting of restrictions leads to a gradual recovery of economic activity in May and then June, after a low point reached in April”.

The figures come a day after Germany reported a document quarterly GDP contraction of 10.1%.