New Delhi: The spread of Covid 19 virus has weighed heavily on economies globally with France plunging into its worst recession with the economy contracting around six per cent in the first quarter of FY21. The central bank in France estimated that the contraction is its worst quarterly performance since World War II.


As the crises took a worse turn with the number of cases increasing, the central bank said the economic activity declined 32 per cent in the last two weeks of March.

It has estimated that for every two weeks during the lockdown the economy will see a decline by 1.5 per cent. A lockdown in France was effective from March 17 and has been extended by two weeks to April 15 and can be further extended if the situation remains grim. The central bank said construction, transport, restaurants, and lodging were the most affected sectors.

On Wednesday, around 541 new deaths were reported in France taking the toll from the deadly disease to 10, 869.

Germany is also expected to brace up for a recession with economic activity taking a hit due to Covid 19 lockdown. According to leading research institutes in Germany, the gross domestic product (GDP) is likely to dip by 4.2 per cent in 2020 because of the Covid 19 lockdown.

Infections increased by 5,633 on Thursday, compared with an increase of 4,288 a day earlier, according to data from Johns Hopkins University. Germany registered 333 new deaths from the virus, the highest daily toll so far.

The experts have said economic output was likely to have shrunk 1.9% in the first three months of the year alone. The Federal Statistics Office is expected to announce the official figure for first quarter on May 15.

Meanwhile, back home India's GDP growth for the current fiscal is expected to slow down to 4.8 per cent, according to an UN report.

The report named UN 'Economic and Social Survey of Asia and the Pacific (ESCAP) 2020: Towards sustainable economies' mentioned that the outbreak is having far-reaching economic and social consequences for the region, with strong cross-border spillover effects through trade, tourism and financial linkages.

The report estimated India's GDP growth for the fiscal year 2019-2020 at 5 per cent and expects it to decline to 4.8 per cent for the current fiscal 2020-21.