According to Xavier Timbeau, “France’s decline in foreign standing is explained by the fact that two main sectors – tourism and aviation – suffered the severe consequences of the COVID-19 pandemic.”
|Area near the Eiffel Tower in the capital Paris, France. (Photo: THX / TTXVN)|
Travel and aviation – the strength of the background French economy – are severely affected by the epidemic of acute respiratory infections COVID-19. Deficit current account France amounted to the equivalent of 2.3% of the Gross Domestic Product (GDP) this year. This has not happened since 1982.
In fact, this is the need to attract finance from abroad to finance the country’s economic activities by 2020.
According to economist Xavier Timbeau, “France’s decline in foreign position is explained by the fact that two main sectors – tourism and aviation – have suffered the heavy consequences of COVID-19 translation. “
In fact, COVID-19 “attacked” directly the French economic model. Last year, the French aviation industry exported almost 65 billion euros (more than 79 billion dollars) in goods, allowing for a trade surplus of more than 30 billion euros.
By October 2020, the industry’s exports fell to only 40 billion euros and the surplus narrowed to 19 billion euros.
Similarly, tourism revenue reached 57 billion euros last year. This figure has dropped to 22 billion euros in the period 1-10 / 2020. Experts say that in the coming time, foreign direct investment will be exhausted while globalization temporarily loses its strength.
The question is whether these market share losses can be erased in the coming years. This is not what economists at the Central Bank of France believe. For them, exports, which are about 3% lower than imports for several years now, will only account for between 90% and 92% of imports from 2020 to 2023. Meanwhile, both The travel and aviation industries will continue to be affected in the long term by the pandemic.
The plan to revive the French economy is aimed at an urgent need to develop new key industries because the aviation industry will need a lot of time to recover./.