France's third lockdown set to cost its economy £12bn


France’s third lockdown set to cost its economy £12bn in just four weeks with output expected to fall 7%

France is facing a £12.8billion hit to its economy after President Macron plunged the nation into its third lockdown, analysts have warned.

The country is struggling to cope with a rapid rise in more contagious variants of Covid-19, intensified by a disappointing vaccine rollout.

Experts at investment bank Berenberg think the latest restrictions, which are due to last four weeks, will wipe around 7 per cent off France’s output while they are in place. 

President Macron (pictured) has plunged France into lockdown as it struggles to cope with a rise in more contagious Covid variants, intensified by a disappointing vaccine rollout

President Macron (pictured) has plunged France into lockdown as it struggles to cope with a rise in more contagious Covid variants, intensified by a disappointing vaccine rollout

This would cost France’s €2.3 trillion economy between €10billion and €15billion in lost growth.

Christopher Dembik, an economist at Berenberg, said: ‘Macron had long shied away from a stricter lockdown in order to prevent a new decline in economic activity. 

But the surging infections numbers left him little choice in the end. Even with a strong rebound in activity from early May onwards, the tighter April lockdown will weigh heavily on the second-quarter average for GDP.’

France’s latest lockdown will see non-essential shops close, travel within the country will be limited, and the 7pm to 6am curfew will continue. 

Unlike the nation’s October-November lockdown last year, schools will also close for at least three weeks.

Dembik added: ‘Mass vaccination is the only way to bring economic recovery to France.’

READ  FTSE rebounds from Covid slump but set for weekly loss

After a slow start, vaccinations have been picking up. The country was averaging 150,000 jabs per day in late February – that had risen to 343,000 on March 30.

The UK administered almost 500,000 Covid vaccinations on March 30.



READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here