France’s economy will rebound less than previously expected this year due to the latest four-week nationwide lockdown aimed at halting a surge in coronavirus cases, reports Bloomberg.
French finance minister Bruno Le Maire cut the country’s 2021 GDP growth forecast to 5% from 6%, following an 8.1% contraction last year. A Bloomberg survey in March showed economists were expecting the economy to expand 5.7%.
“Closing education establishments and 150,000 stores is essential to slow the spread of the virus, but these measures will have an impact on the French economy,” Le Maire told Le Journal du Dimanche newspaper in an interview published on Sunday. “This estimate is both sincere and cautious.”
President Emmanuel Macron sought to avoid a third nationwide lockdown to protect the economy but was forced last week to announce tighter restrictions across the country.
More contagious, deadlier variants have accelerated the spread of the virus, and the vaccination campaign is yet to have a significant impact after getting off to a slow start.