The rebound of the French economy did not last long. Activity indeed picked up after the lockdown was lifted, but for several days now it has been paralyzed again in a number of sectors: hospitality, events, nightlife, tourism…
The government announced this Thursday, October 22, that 38 additional departments will be placed under a health alert, effectively placing populations under a nighttime curfew. These territories join agglomerations and metropolitan areas under this regime for several days, including the Paris region. In total, 54 departments are subject to these exceptional measures, affecting 46 million citizens. The second wave of infections is very much present, with hospitalizations increasing sharply.
But these measures not only have a health impact. They also weigh heavily on the economy. To support affected businesses, the authorities have extended aid measures to the new departments: deferrals and exemptions of contributions, partial unemployment, solidarity funds. All of this will cost two billion euros for public finances, according to Bruno Le Maire.
Speaking to Europe 1, the Minister of the Economy warned that the curfew could risk pushing growth into negative territory in the fourth quarter. A relapse that is not a surprise, he assured, and that has been factored into the government’s forecast of a 10% contraction of the GDP this year.
