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France’s Growth Could be Disadvantaged by the Pandemic

The Pandemic has brought many consequences to the countries that are located in the European zone. Especially to France, since it has had declines in its percentage point reaching 5%. The growth forecast for this year is not very positive due to the pandemic.

Covid-19 has brought many disadvantages that cannot hide, and one of them has been the growth forecast for France. And so it has been pointed out by Bruno Le Maire, who is currently the economy minister of this country.

He also gave other statements to the weekly Journal du Dimanche to clarify certain points related to the growth forecast for France. During his statement, he was able to point out the measures they have taken to stop the spread of the coronavirus among their residents.

The closure of schools has been mandatory, as well as the closure of 150,000 businesses. And it is that we must take all possible measures to stop the circulation of this virus in this European country. However, the economy minister also pointed out that these measures will surely impact the country’s economy.

For this reason, the growth review will carry out for 2021 with a percentage of 6% to 5%. As for the French GDP for the year 2020, it contracted by 8.2%.

The aid has been necessary during the pandemic and has an estimated cost of 11,000 million euros, which would be 12,900 million dollars. This amount has been managed for April, and the support will continue as long as the health crisis continues. Bruno Le Maire has recalled these data to the JDD for a better understanding of the situation.

Public aid is of great importance during the pandemic, and its end will be progressive. The economy minister has also pointed out that it is inevitable that some sectors remain affected for a long period of time. However, for some sectors, support will continue, as would be the case in aeronautics. Among the different points of Bruno Le Maire to the JDD, he has reiterated that they must pay the debt at the end of the crisis.

Why has the growth forecast in France been lowered?

The French government decided to cut down one percentage point from the growth forecast for the country’s economy for a self-evident reason. The impact of the new restrictions to curb the pandemic has been the main reason for making this decision.

The confinement has been light in a total of 19 departments, and there has been the closure of non-essential businesses. The restriction of internal travel has also been another of the measures to stop the advance of covid-19. But these restrictions have been extended in recent days by President Emmanuel Macron.

This extension has come into effect on Saturday, precisely at 7 pm when the curfew begins, and the extension will be for one month.

Le Maire has also known that he understands the concern that must exist among traders from different sectors. For this reason, the support will continue with a monthly aid of 200,000 euros from the Solidarity Fund.

In his statement, he also announced that the parts of his reserves that are not sold would be compensated. Likewise, the rents of the premises that are for a high amount will be covered by a limit of 10 million euros.

The economy minister also clarified that the presidential promise would be kept, regardless of its cost. This, in turn, will allow for faster and stronger recovery once sanitary restrictions are lifted.

The coronavirus pandemic has forced European governments to take strict containment measures. Especially in France, there was a large number of deaths due to Covid-19.

For this reason, President Emmanuel Macron announced measures to continue supporting the sectors that have been most affected by the coronavirus. In fact, in early 2021, Le Maire noted that a persistent virus is being fought, and economic growth of 6% was forecast for 2021.

During 2020 there was a fall of 9%, and it is that France has spent a large sum of money on aid to reduce the number of layoffs and the bankruptcy of companies belonging to different sectors.

So, at that time, he promised to put the money that was necessary to avoid this type of inconvenience. And to this day, they have maintained their commitment to the goal that Covid-19 does not continue to circulate and affect the French. The government will continue its support until it can overcome this crisis.