Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
economic disaster
Economy

Economic disaster in France: consequences of the pandemic

02.05.2021
2 min read

Economic disaster in France: overview of the situation in the country

The Coronavirus pandemic has had serious consequences for countries, not only for developing countries, but also for those with stability and high GDP. France is in danger of an economic disaster. It has found itself in a difficult situation, the scale of which is comparable to the times of the Second World War. Almost all branches of industry and business have been affected.
As a result of the pandemic, France has seen a decline in all major indicators. In the second quarter, GDP decreased by 13.8%. The decline is also observed in the segment of consumption – by 11%. The volume of investments decreased by 17.8%, export supplies – by 25.5%. During the year the GDP fall is observed at the level of 11%.
A huge number of French companies are experiencing difficulties. They have suffered serious losses, and the damage is felt by large corporations. For example, the income of automobile concern Renault for the first quarter of last year decreased by 7.3 billion euros. Total Oil and Gas Corporation lost $8.4 billion in the second quarter. According to experts, economic recovery will take quite a long time, on average, it will take about 2 years to achieve pre quarantine results. Analysts predict that by the second half of this year, the unemployment rate will reach 11.5%, which is the maximum value for the country.

economic disaster

The reason for this difficult situation is a long quarantine period and severe restrictions. Moreover, in France these measures lasted about 2 months, while in Germany they were only a month. As a result, German GDP fell by 10% in the first quarter, which was a record value since 1970.
Germany was also affected by the pandemic. Here, consumer spending was significantly reduced, exports and imports fell. At the same time, government spending increased. In the period from April to June, GDP fell by 11.7%, and the unemployment rate was 6.4%. Last year, the German economy reached its lowest level since 2008-2009, when the global financial crisis was observed.
During the summer, the European Union government agreed on a new plan to save the economy. To this end, 750 billion euros were allocated, 500 billion of which were allocated to support the EU countries whose economy was most affected. 250 billion euros will be used for loans to restore business.
As part of the rescue plan was revised EU budget for the period from 2021 to 2027. Its size was 1.074 trillion euros.
Now the governments of France, Germany and other countries are taking active measures to stabilize the processes, reduce unemployment and restore industry. Export volumes are gradually increasing all over the world, which shows positive trends in the global market.

Tags: Economic
0
Previous Post The United States funds quantum computing and artificial intelligence Next Post What is a rally in the market: definition and reasons for the emergence

You Might Also Like

investment in saving the planet
Economy
EU urges private companies to invest in saving the planet
23.03.2022
Federal Reserve System
Economy
Why the Federal Reserve System (FRS) refused to raise interest rates
06.06.2020
law on national security
Economy
China passed a law on national security in Hong Kong
28.03.2021
cotton production in Israel
Economy
Cotton production has increased in Israel: reasons for the interest in the crop
27.06.2023
Lithuania_V
Economy
Lithuania’s economy is the strongest in the EU
19.09.2021
new gas field
Economy
A new gas field has been discovered near Turkey: details
22.05.2021

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics