French economy returns to growth in first quarter
- "The unexpected increase in French GDP in Q1 suggests that the economy has proved more resilient to the poor health situation and associated restrictions than we had thought," said Jessica Hinds, Europe economist at Capital Economics.
PARIS: The French economy returned to growth in the first quarter, official data showed on Friday, expanding slightly after the coronavirus outbreak plunged countries across Europe into historic recessions.
The economy grew by 0.4 percent in the first three months of the year, according to France's national statistics institute, adding that the rebound was "limited" as it was well below pre-pandemic levels.
It was also lower than the institute's mid-March forecast of one percent growth, which had not taken into account new restrictions on movement that were later imposed following a resurgence of virus infections.
The data come a day after President Emmanuel Macron announced a phased reopening of the country, allowing French cafes, cultural venues and other businesses that have been shut down due to the Covid-19 pandemic to return from May 19.
"The unexpected increase in French GDP in Q1 suggests that the economy has proved more resilient to the poor health situation and associated restrictions than we had thought," said Jessica Hinds, Europe economist at Capital Economics.
"Nevertheless, with France in a full national lockdown for more than half of Q2, we doubt that a sustained recovery in activity will be underway before the summer," Hinds said.
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