French Economy Registers Record Rebound in 3Q -- Update
--France's third-quarter GDP grew 18.2% on the quarter and fell
4.3% on the year
--GDP data for the second quarter was revised up slightly to a
13.7% quarter-on-quarter drop
--The rebound in 3Q was broad-based across sectors
By Maria Martinez
France's economy rebounded in the third quarter, recovering from
its biggest contraction on record in the second quarter after a
nationwide lockdown enforced to limit the spread of the coronavirus
brought economic activity to a halt.
The eurozone's second-biggest economy grew 18.2% in the third
quarter as restrictions were lifted, French statistics agency Insee
said in a first estimate. Economists polled by The Wall Street
Journal had forecast a 15.0% expansion.
This follows a revised 13.7% decline in the second quarter, up
slightly from the previous estimate of a 13.8% drop.
On a year-on-year basis, the economy contracted 4.3% in the
third quarter, Insee said.
The breakdown showed the rebound was broad-based, with increases
in household spending, investment, net trade and government
"The massive increase in French gross domestic product in the
third quarter is of no comfort to French policymakers or
households, who are now contending with a second national
lockdown," says Andrew Kenningham, chief Europe economist at
On Wednesday, French President Emmanuel Macron announced tough
restrictions once again. A national lockdown, which will begin
Friday and last at least one month, will require people to remain
inside their homes while restaurants, bars and shops deemed
nonessential will close.
Berenberg estimates the one-month lockdown in France could cause
a significant contraction in GDP of 3% to 4% in the fourth quarter,
while Capital Economics projects it could cause GDP to drop 2.5% in
Spain, Germany and Italy will also publish GDP figures on
Friday, and they are also forecast to show strong rebounds in the
third quarter following historic contractions in the second
quarter. The eurozone as a whole will also release the first
estimate of its GDP for the third quarter and a sharp expansion is
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires
October 30, 2020 04:04 ET (08:04 GMT)
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