Frances Economic Recovery Loses Pace After Initial Surge

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Glass windows reflect city workers in the La Defense business district in Paris.

Photographer: Nathan Laine/Bloomberg

Photographer: Nathan Laine/Bloomberg

The pace of France‘s economic recovery is slowing, the country’s central bank said, confirming expectations of a prolonged period before output catches up with pre-crisis levels.

In its monthly report, the Bank of France said economic activity was 7% below normal levels in July after a 9% gap in June. Indicators for August suggest a similar shortfall as last month or only a slight improvement.

Slowing Recovery

French economic activity was 7% below normal levels in July

Source: Bank of France

The report confirms what the Bank of France has described as a recovery in the shape of a bird wing, with a sudden jump after the lifting of lockdown measures in May, followed by a steady return toward normal.

For August, business leaders in services and most industrial sectors expect stability, the Bank of France said. In construction, activity is expected to improve slightly to almost reach normal levels.