France sees 8% GDP drop this year after lockdown extension

The French economy is expected to contract a worse-than-expected eight percent this year, reflecting the impact of an extended coronavirus lockdown until May 11, Finance Minister Bruno Le Maire said Tuesday.

Le Maire had previously targeted a six percent GDP decline for this year but that was based on a lockdown that lasted just one month, instead of the two-month period announced by President Emmanuel Macron in a televised address Monday night.

Le Maire told BFM television that the eight percent forecast would be included in a new 2020 budget programme set to be unveiled this week.

But he cautioned that given the uncertain outlook for economies across the globe, not least in the United States and Asia, "these forecasts need to be considered with caution."