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French economic activity at 65% of normal, business morale in record drop

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French economic activity at 65% of normal levels: INSEE

FILE PHOTO: A view shows the deserted business district of La Defense as lockdown is imposed to slow the spreading of the coronavirus disease in Paris, France, March 18, 2020. REUTERS/Benoit Tessier

INSEE gave the first picture of the impact of the nationwide lockdown as it published its monthly business confidence index, which saw its biggest single drop since records began in 1980. The French government has prepared a 45 billion euro package - 2% of GDP - of crisis measures made up mainly of deferred taxes and payroll charges for companies, and payments to companies who put workers of reduced schedules.

INSEE said it was too early to try to forecast how deep the downturn would be, but it estimated that each month of confinement would reduce economic activity by 12 percentage points on a quarterly basis and a 3 percentage points on an annual basis.

 

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