The French economy shrank by 4% in the fourth quarter of 2020, according to the Banque de France – economy

The French economy contracted by 4% in the fourth quarter of 2020, estimates the Banque de France in an economic update published on Wednesday, January 13. The partial rebound in activity observed in December 2020 after the lifting of confinement was not enough to offset the impact of the health crisis. In light of these data, the central bank maintains its forecast of a 9% decline in France’s gross domestic product (GDP) over the whole of 2020.

The French economy evolved in December at a level 7% lower than its level before the Covid-19 pandemic, estimates the Banque de France based on the survey it conducted between December 21 and on January 7 with 8,500 companies. As a reminder, this loss of activity amounted to -17% in May and -11% in November.

Slight progress for industry

“The improvement mainly concerns the service sector, which had been the most affected by the new confinement. However, activity remains extremely degraded in accommodation and catering. The industry has seen a slight increase. was stable in the building industry, close to its pre-crisis level, “observes the Banque de France.

According to the Banque de France, the production capacity utilization rate increased by one point to reach 74% on average in December (against 79% before the crisis). “The improvement is noticeable in the chemical industry (from 77% to 82%) and in the computer, electronic and optical products sector (from 73 to 76%). On the other hand, the production capacity utilization rate recorded a decline in the automobile (from 69% to 68%) and in aeronautics and other transport (from 65% to 64%) “, we read in the conjuncture point.

The Banque de France expects activity to remain stable in January, in industry as well as in services and construction. The loss of GDP would therefore remain around 7%.

With Reuters (Leigh Thomas; French version Jean Terzian, edited by Bertrand Boucey)