Bank of France: French recession seen less dire than expected at -8.7% in 2020

According to the latest economic forecasts published by the Bank of France, the economic recession is seen less severe in 2020 than previously estimated.

Key details

“French central bank revises GDP forecasts to -8.7% in 2020, +7.4% in 2021, +3.0% in 2022 vs. -10.3% in 2020, +6.9% in 2021, +3.9% in 2022 previously.”

“French central bank estimates economic activity running at 5% below normal levels.”

“French central bank sees Q3 GDP rising 16% QoQ after contracting 13.8% in Q2.”

“French central bank sees economy shedding 825,000 jobs this year, unemployment rate to peak at 11.1% in 2021.”

EUR/USD erases gains

Despite the upward revision to the growth forecasts, EUR/USD pares back gains to now trade at 1.1850. The spot turns neutral, having hit a daily high of 1.1869.