France Heading for Worst Economic Downturn since WWII: Minister

“We will probably be at more than the -2.2 percent [seen] in 2009. That shows the magnitude of the economic shock we are facing,” he told the Senate in a hearing by teleconference on Monday.

France is the world’s fifth-worst-hit nation by Covid-19, with the number of deaths from the pandemic having exceeded 8,000, while there are more than 93,000 people infected.

The French government estimated last month in an emergency budget update that the economy would contract by one percent this year, but has since indicated that it would have to revise that figure. 

As part of its crisis measures, the government has prepared a €45 billion ($50 billion) package – two percent of GDP – to pay businesses not to lay off workers. Deadlines for taxes and loan repayments have also been delayed, while another €300 billion in state-guaranteed loans are being extended to any struggling company that needs them.

France has been pushing for a common EU fund to help Europe through the Covid-19 crisis. Proposed by Le Maire, the fund would come on top of other multibillion-euro rescue packages being negotiated by the EU and eurozone institutions.