PARIS, July 31 ― France's economy contracted by a record 13.8 per cent in the second quarter under the impact of coronavirus lockdowns, the national statistics institute INSEE said today.

The seasonally-adjusted quarter-on-quarter drop in gross domestic product (GDP) was better than forecasts but worse than the performance of its eurozone peers.

"GDP’s negative developments in first half of 2020 is linked to the shut-down of 'non-essential' activities in the context of the implementation of the lockdown between mid-March and the beginning of May,” INSEE said in a statement.

INSEE also updated the figure for the first quarter ― when lockdowns had just begun to be implemented ― to a 5.9 per cent contraction, from the 5.3 per cent it had previously estimated.

The second quarter figure means the French economy has been shrinking for three consecutive quarters and continues to be in recession.

France's second quarter contraction was much sharper than the record 10.1 per cent fall in Germany. Austria suffered a 10.7 per cent contraction and Belgium 12.2 per cent.

However the drop was better than INSEE's own forecast from mid-June of a 17 per cent drop. The French central bank had estimated a 14 percent fall at the beginning of July.

The analyst consensus established by Factset was for a 15.3 per cent drop in GDP. ― AFP