PARIS: The coronavirus is set to strike a severe blow to French growth in 2020, cutting several decimal points off a figure that may struggle to reach one per cent, the finance minister said on Monday.
Bruno Le Maire (pictured) told French radio station France Inter that COVID-19 will cause an economic downturn of “several decimal points”, an increase from previous estimations.
The epidemic could cause growth to slump to under 1 per cent of GDP in 2020, he added.
But he refused to give a more precise number until the French government’s presentation for fiscal stability to the EU on April 15.
Employment will be impacted, he warned, and said tax rebates are an option for companies particularly affected.
“Until the coronavirus, all indicators — investment, employment, innovation and growth —were positive.
“We can see that once the epidemic takes hold, the downturn is very brutal,” Le Maire said.
A “coordinated and massive European recovery plan” needs to be announced on March 16, when EU finance ministers will meet to address the economic impact of the virus, he said. — Reuters
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