Greater Paris Area Q2 2020 Market Report
According to the International Monetary Fund, the global gross domestic product (GDP) in 2020 is expected to shrink by about 4,9% compared to 2019. This projection represents a -8% decrease for advanced countries and another -3% for emerging countries and developing countries. For Europe, this rate is about -10,2%, and drops further to -12,5% for France.
It should be noted that the projections for 2021 are far more encouraging with a variation of +5,4% of the global production and +7,3% for France. These outlooks remain subject to the risk of a second wave and its consequences on the global economy in the event of another lockdown.
In France, the National Institute of Statistics and Studies (INSEE) assessed the GDP decrease as being closer to 9%, including a rebound of +19% at Q3 2020 and +3% at Q4 2020. By comparison, the global GDP decreased by 2,6% in 2009, which begins to indicate the impact of coronavirus on the global economy.
At the end of June 2020, 4,5 million of workers were still partially unemployed (compared to 8,8 million in April 2020). This short working period allowed employment numbers to slowly recover, even if the impact measures remain uncertain. The French Government also announced a two-year, 100-billion-euro recovery plan, including 40 billion euro dedicated to grants from the Council of Europe.
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