Francois Villeroy de Galhau, the Governor of the Bank of France (French Central Bank), said in an interview with LCI Television broadcasted on Sunday that the French economy had been bouncing back from the pandemic induced economic slump as fast as expected a month earlier adding that the recovery might have been "a little faster-than-anticipated"
In point of fact, latest statement from the Governor of France’s Central Bank came forth a couple of weeks after the IHS Markit eurozone composite PMI (Purchasing Managers’ Index) survey data had revealed that the index rose to 47.9 in May compared to an earlier figure of 31 in April, which followed a record slump in the index to a reading of 12.7 in March, during the peak of the pandemic outbreak in Central Europe.
Apart from that, according to the latest available data, the Composite PMI (Purchasing Managers’ Index) of France in June rose to 51.70 from an earlier figure of 32.10, suggesting that the French economy had broken out of the recession territory last month.
A reading above 50.0 indicates growth, while a reading below 50.0 has been contemplated as a recessed economy. Concomitantly, the Central Bank of France had forecasted last month that the bloc’s second-largest economy behind Germany would be operating 12 per cent below its normal activity by end-June, up from a 32 per cent reduction in activities experienced during the forced business closures.
French recovery is going a little better than expected, says Villeroy on LCI television
Meanwhile, as a number of market participants remained Panglossian over the Bank of France’s latest update due as early as by Tuesday, voicing a strident tone over the flabbergasting roaring back of the French economy from the pandemic-driven economic downturn, French Central Bank Governor Villeroy said in the interview with LCI Television on Sunday, “The recovery is going at least as well as we expected and perhaps a little better.
” Nonetheless, last month the French Central Bank was quoted saying in a statement that the French economy might have contracted 15 per cent during the periods of forced business closures, however, Villeroy said on Sunday that the figure would likely to be “a bit better”.