France scraps GDP forecasts; Sees 8% fall in 2020
Bigger rescue package to push budget deficit to record of 9%
The French economy was expected to shrink by 8% this year as an extended coronavirus lockdown forced the government to ditch forecasts issued only last week.
Finance Minister Bruno Le Maire added that a relief programme would push the country's deficit out to a post war record of 9%.
The government had indicated a 6% fall in GDP for this year based on a one-month lockdown as opposed to the two-month period announced by President Emmanuel Macron on Monday night.
Le Maire on Tuesday told BFM television the new GDP forecast would be included in a new 2020 budget program set to be unveiled this week.
France's population of 67m were ordered on March 17 to stay at home except to shop for food, go to work, seek medical help or exercise. The lockdown was originally scheduled to end on Tuesday.
The government last week more than doubled last week a package of measures to save businesses from the pandemic's impact to at least €100bn (£87bn).
"If we need to do more, then we will do more. We will be there," Le Maire said. The package allows companies to defer tax and payroll charges along with a €7bn fund for small at-risk companies.