The Spanish and French economies, the most severe in Europe with the new coronavirus infection (Corona 19), showed a negative growth of 5% in the first quarter of this year.
According to the French Statistical Office (INSEE) on the 30th (local time), France’s gross domestic product (GDP) fell 5.8% in the first quarter.
The French economy recorded negative growth for the second quarter following a negative growth of -0.1% in the fourth quarter of last year.
Accordingly, France confirmed that it is technically in a recession. In general, economists believe that if the gross domestic product (GDP) grows negatively for two consecutive quarters, it is technically entering a recession.
-5.8% is the worst quarterly growth rate since 1949 when the French Bureau of Statistics began to aggregate GDP.
Earlier this month, the French central bank, Bank de France, also estimated GDP growth in the first quarter of this year at -6%.
It was analyzed that the sharp drop in the growth rate in the first quarter was due to the prohibition of store operations due to the spread of new coronavirus infections (corona19), the contraction of economic activity due to restrictions on mobility, and a sharp decrease in household consumption.
France’s household consumption fell 7.3% in the first quarter and plunged 17.9% in March, when a blockade to block the spread of Corona19 was issued.
The French government expects this year’s economic growth rate to be -8%.
Finance Minister Brno Lemer attended the House of Representatives the day before and said, “We must be aware of the serious impact on the company’s Zuldosan and job markets after the shock is absorbed.”
The French government approved the emergency financing plan of 100 billion euros (145 trillion won) in preparation for the economic shock of Corona 19, and the government provides national guarantees up to a total of 300 billion euros (397 trillion won).
Spain’s GDP growth rate for the first quarter was tentatively estimated at -5.2%.
The Spanish economy grew 0.4% in the previous quarter, driven by strong exports, but in the first quarter of this year, the Corona 19 crisis spread uncontrollably, a negative growth of 5.2%.
The Spanish Bureau of Statistics (INE) explained that the nation’s blockade following the Corona 19 had difficulties in gathering enough data to aggregate GDP.
Spain has been growing at a rate higher than the European average after reviving the economy after a long five-year recession since 2013, but the economic outlook is very bleak after hit by the Corona 19 direct hit.
Spain’s central bank, Banco de España, said in a report released on the 20th that it expects GDP to fall this year from a minimum of 6.6% to a maximum of 13.6%.
France and Spain are among Europe’s most serious countries.
Spain’s Corona19 died as of April 30, 2,275, and France 2,87.
In Europe, Italy (27,682 people) and the United Kingdom (26,97 people) are the only countries with more corona19 deaths than Spain and France.