French economy shrinks most since WW II, slides into recession

France officially slid into a recession after suffering one of the worst quarterly contractions in more than 50 years, the economy sees its  sharpest downturns since World War II due to coronavirus pandemic.

The outlook for the rest of the year is souring significantly amid the confinement to limit the spread of the coronavirus, according to the Bank of France.

For every two weeks the population remains under confinement, the economy shrinks by at least 1.5 percent, it added.

The central bank’s estimate of a 6% slump is the latest indicator of the severity of the shock to European economies from a simultaneous collapse in demand and supply. Such a GDP drop from one quarter to the next would be comparable only to the 5.3% recorded around the strikes of May 1968.