Picture used for illustrative purpose. File

Gulf Today Report 

The French economy lurched back into contraction in the final quarter of last year but it is below expectations after a second lockdown.

The second-biggest economy in the eurozone shrank 1.3% in the last three months of 2020 after it recorded gains of 18.5% in the previous quarter, mentioned INSEE statistics agency.

This means that in 2020, the economy contracted 8.3% beyond the -11% the government forecasted. 

READ MORE 

Gold records monthly decline

Oil prices firm as reduction in supply overshadows demand worries

Oil prices slip on demand worries

That is encouraging news for the public finances as the public sector budget deficit is, therefore, likely to come in at less than the 11.3% of gross domestic product the government had expected.

INSEE added that consumer spending soared by 23% in December after lockdown restrictions were eased.

Meanwhile, exports surpassed imports so that foreign trade contributed 0.9 percentage points to fourth-quarter GDP while inventory building added 0.4 percentage points.