As a consequence of different assistance measures for the coronavirus-hit economy, France's budget deficit is anticipated to hit about 220 billion euros ($268.16 billion) this year, as per finance minister Olivier Dussopt on Saturday. As per Dussopt, the prior estimate was 173.3 billion euros.

The European Commission predicts that France's economy will rise by 5.7% this year, whereas the government expects growth of 5%.

As per the French publication Les Echos, the French government plans to present parliamentarians with a package comprising extra emergency stimulus measures totaling 15 billion euros next week.

The initiatives, which will be added to the almost 100 billion euros in emergency help provided last year, are anticipated to add tax breaks for hotels, restaurants, and bars, and different assistance programs such as reimbursement for missed working hours.

France's GDP fell 0.1% in the first quarter of 2021, as per updated government figures released today, indicating a relapse into recession as the country struggles to rebound from a pandemic-induced slowdown.

The unexpectedly large downward adjustment from such an initially reported increase of 0.4% in January-March highlighted weaker results in the construction industry.

It was the second straight quarter of recession for the French economy, which declined by 1.5% in the last three months of 2020. The INSEE statistics office's updated number highlights the difficulties governments have experienced in reacting to the coronavirus outbreak.

As lockdowns to restrict Covid-19 have temporarily halted businesses, notably in the services sector, French President Emmanuel Macron has invested tens of billions of euros to strengthen activity and preserve livelihoods.

This year, France and its European neighbors suffered a new wave of coronavirus infections, leading governments to reinstitute strong controls to block the spread.

Household expenditure, the engine of French economic activity, dropped 8.3% in April, at the beginning of the second quarter, when President Emmanuel Macron announced a third national Covid-19 lockdown. Household real disposable income declined by 1% in the first quarter, whereas the savings rate dropped to 21.8 % from a modified 22.7 % towards the end of 2020.

Covid- 19 limitations are being lifted in France. Finance Minister Bruno Le Maire reiterated his 5% growth prediction for 2021, claiming the catastrophe is “moving behind us, but we should remain vigilant.” As per INSEE, full-year 2020 GDP was 8% lower than predicted, with a decline of 8% compared to the prior projection of 8.2%.