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The Bank of France has released their estimate for French GDP in Q1 and it provided clear evidence of the damage COVID-19 disruption is expected to have on the French and global economy, economists at MUFG Bank apprise.

Key quotes

“The Bank of France estimated that the French economy will contract by 6.0% in Q1.”

“The estimated loss of activity in the one week of confinement in Q1 was estimated at around 32%. According to the Bank of France’s survey, factories were running at a record low of only 56% of capacity in March.”

“The scale of economic weakness has prompted ECB President Lagarde to renew her plea for a strong fiscal response ahead of today’s second round of discussions over a joint EU response.”

“Unless there is a positive surprise today from EU policymakers, the euro is likely to continue to trade on a softer footing amidst the recent improvement in risk sentiment.”