FX.co ★ France's GDP growth forecast revised upwards

Oddly enough, one after another, European countries keep releasing some positive economic statistics. According to their reports, the pandemic has failed to cripple the well-established economic system. Although the coronavirus crisis has had a profound effect on the global economy, somehow it has managed to stay afloat.

Following Germany, the French authorities have also provided a forecast which implies a dramatic rise in the second half of the year after a steep drop in the first six months of 2020. Already in July-September, France is expected to demonstrate a sharp return to growth. According to experts, its economy will grow by 19 percent. In the period from October to December, it is likely to further expand by around 3 percent. Economists have revised upwards their projections on the back of gradual easing of restrictions imposed to curb the spread of coronavirus. Just a few weeks ago, the French Ministry of Finance published a much less positive forecast of the country's economic situation which assumed a possible downturn. Although the current expectations are more optimistic, the predicted increase in the second half of the year will not be able to fully offset the first half-year collapse by the end of the year. The Ministry expects France's GDP to contract by 11 percent in 2020.

Recall that in mid-March, the government of the eurozone's second-largest economy introduced tight lockdown measures in the region. The restrictions proved to be effective, and the economy managed to weather the shocks caused by the COVID-19 pandemic and even recover after the quarantine rules had been lifted.