The French economy is not expected to grow in the last three months of this year compared to the previous quarter. This brings the recovery to a standstill after the economic collapse of the coronary artery disease, warns the French national statistical office Insee. The main cause of this stagnation is the upturn in the number of new Coronas fuses, which creates great uncertainty among entrepreneurs and households. Initially Insee anticipated that France’s gross domestic product (GDP) would grow by 1% on a quarterly basis in the fourth quarter. This figure has now been adjusted to 0% growth, partly due to concern in the service sector. Transport companies bars, restaurants and hotels will suffer if new lock-down measures are announced. In Paris, there has already been an intervention in the catering industry. Bars in the metropolis will have to close over the next two weeks to contain the second coronagolf. According to Insee, the increased uncertainty also causes households to hoard money as a precautionary measure. This saving is then a burden on consumer spending. In the second quarter, the French economy shrank at record rates, by 13.8% compared to the previous quarter. Insee expects a strong upturn in the third quarter, but due to the stagnation in the final quarter, the Statistical Office expects a contraction of around 9% of GDP by 2020.
