Total production of goods and services is falling sharply. The contraction is particularly strong in construction (-24.1% after -12.8%), but the production of goods also falls (-16.8% after -5.6%) and the production of market services also falls sharply (-13.4% after -5.0%) according to INSEE.
In the second quarter of 2020, real gross domestic product (GDP) fell sharply: -13.8%, after -5.9% in the first quarter of 2020. It is thus 19.0% lower than in the second quarter of 2019. The negative trend in GDP in the first half of 2020 is linked to the cessation of “non-essential” activities in the context of the containment implemented between mid-March and early May. The gradual lifting of restrictions leads to a gradual recovery of economic activity in May and then June, after the low point reached in April.
IHousehold consumption expenditure falls (-11.0% after -5.8%) and gross fixed capital formation (GFCF) falls even more sharply (-17.8% after -10.3%). General government consumption expenditure also fell (-8.0% after -3.5%). All in all, final domestic demand excluding stocks fell sharply, contributing -12.0 points to GDP growth.
Exports fell more sharply this quarter (-25.5% after -6.1%) than imports (-17.3% after -5.5%). Overall, foreign trade made a negative contribution to GDP growth: -2.3 points, after -0.1 points in the previous quarter. Conversely, changes in inventories made a positive contribution (+0.6 point).