French Virus Debt Could Create Another Italy
(Bloomberg) -- France’s economy is set to shrink by 8.6% this year in Bloomberg Economics’ central forecast, and that assumes the pandemic is brought under control and government support limits any lasting damage. The real danger is that the administration does too little or that support fails to reach those who need it. The damage to the economy and public finances would then last much longer, with GDP plunging 14.4% in 2020 and debt shifting to an upward path above 120% of GDP from 2021 -– following Italy’s experience after the global financial crisis.
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