France’s economy contracted less than expected in the fourth quarter of 2020

Official data published today showed that France’s economy contracted again in the fourth quarter of last year, but not to the extent expected after facing a second wave of isolation measures aimed at combating the spread of the Corona virus.

The National Institute for Statistics and Economic Studies said that the second largest economy in the euro area shrank 1.3% in the last three months of last year, after rising 18.5% in the previous quarter, when it achieved an unprecedented recovery after the first general closure.

The result exceeds expectations for an average decline of 4 percent in a Reuters poll of 28 economists, while estimates ranged from -1.4 percent to -5.3 percent.

This also means that for the year 2020 as a whole, the economy shrank by 8.3 percent, which is better than -11 percent, which is the decline that the government had expected in its budget plans.