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French Tourism Crashes By 35% Amid Virus Outbreak; Europe On Recession Watch
02-25-2020, 04:19 AM,
#1
French Tourism Crashes By 35% Amid Virus Outbreak; Europe On Recession Watch
French Tourism Crashes By 35% Amid Virus Outbreak; Europe On Recession Watch

<span property="schema:name" class="field field--name-title field--type-string field--label-hidden">French Tourism Crashes By 35% Amid Virus Outbreak; Europe On Recession Watch</span>

<div property="schema:text" class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>French Minister of Economy and Finance, Bruno Le Maire, told <a href="https://www.cnbc.com/2020/02/23/coronavirus-impact-france-sees-tourism-numbers-fall-by-30percent-to-40percent.html">CNBC's</a> Dan Murphy on Sunday at the G-20 Finance Ministers and Central Bank Governors' Meetings in Riyadh, Saudi Arabia, that the <a href="https://www.zerohedge.com/geopolitical/coronavirus-panic-goes-global-skorea-warns-watershed-moment-italy-quarantines-12-towns">Covid-19 outbreak</a> will have a material impact on the French economy and the world. </p>

<p>The country's finance minister warned France's tourism sector has plunged following the outbreak of the virus last month. "We have fewer tourists, of course, in France, about 30%, 40% less than expected," Maire said. </p>

<p>"That's, of course, an important impact for the French economy," he said. Tourism represents 10% of GDP in the country and supports upwards of 3 million jobs. </p>

<p>Maire said France welcomed 2.7 million Chinese tourists last year, "It won't be the same, of course, in 2020," he said, referring to the more than 200,000 flight cancellations since the virus broke out in China last month. </p>

<p>France has reported 12 confirmed cases of the virus, and one death as the country "activates" 70 new hospitals in preparation for a much broader outbreak. </p>

<p>Following a Sunday meeting with Prime Minister Edouard Philippe, Health minister Olivier Veran said: "Until now we have had [only] 38 health establishments prepared to welcome ill people - basically university hospitals [<em>centres hospitaliers universitaires</em>; CHUs]."</p>

<p>"I have decided, in agreement with the Prime Minister, that 70 establishments with a SAMU [urgent response team, <em>service d'aide médicale urgente</em>] will be activated tomorrow to increase our response capacity if necessary."</p>

<p>Veran said the country would boost its "testing capacity," adding that protective gear, such as virus masks and biological suits, will be ordered in "large quantities." </p>

<p>He added: "We are acting quickly and decisively in the face of the threat of an epidemic...We are taking all the necessary measures to ensure the safety of the French people."</p>

<p>Much of the outbreak in Europe is situated in Lombardy, a region in Northern Italy. </p>

<p><a data-image-external-href="" data-image-href="/s3/files/inline-images/virus%20map_0.png?itok=Q3IPASNX" data-link-option="0" href="https://www.zerohedge.com/s3/files/inline-images/virus%20map_0.png?itok=Q3IPASNX"><picture><!--[if IE 9]><video style="display: none;"><![endif]--><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/virus%20map_0.png?itok=Jpu1VJLu 1x" media="all and (min-width: 1280px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/virus%20map_0.png?itok=Jpu1VJLu 1x" media="all and (min-width: 480px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/virus%20map_0.png?itok=Jpu1VJLu 1x, https://zh-prod-1cc738ca-7d3b-4a72-b792-...k=Jpu1VJLu 2x" media="all and (min-width: 1024px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/virus%20map_0.png?itok=Jpu1VJLu 1x" media="all and (min-width: 768px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/virus%20map_0.png?itok=Q3IPASNX 1x" type="image/png"></source><!--[if IE 9]></video><![endif]--><img data-entity-type="file" data-entity-uuid="63e7526b-5098-4a38-a917-adca26f26ea6" data-responsive-image-style="inline_images" height="446" width="500" src="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/virus%20map_0.png" alt="" typeof="foaf:Image" /></picture></a></p>

<p>More than 200 confirmed cases in Italy have been confirmed on Monday and four deaths. The country is taking similar measures as China did, shutting down cities and businesses as its economy starts to grind to a halt. </p>

<p>Both France and Italy are already in <a href="https://www.zerohedge.com/economics/europes-economy-records-worst-quarter-2013-slowing-persist-2020">danger of missing growth targets for 2020</a>, and the outbreak of the virus on the continent could tilt both countries into recession. </p>

<p>A much more significant risk is developing as a virus shock from China could push <a href="https://www.zerohedge.com/economics/european-manufacturing-downturn-deepens-december">Europe into a downturn</a>. Germany, the economic heartbeat of Europe, is already teetering on the edge of recession, the longer China's economy remains in <a href="https://www.zerohedge.com/economics/terrifying-charts-show-chinas-economy-remains-completely-paralyzed">economic paralysis</a>, the bigger the risk it's to Europe. </p>

<p><a data-image-external-href="" data-image-href="/s3/files/inline-images/2019-12-16-4_0.png?itok=_g-KYy4s" data-link-option="0" href="https://www.zerohedge.com/s3/files/inline-images/2019-12-16-4_0.png?itok=_g-KYy4s"><picture><!--[if IE 9]><video style="display: none;"><![endif]--><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-12-16-4_0.png?itok=Pz2NfZIV 1x" media="all and (min-width: 1280px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-12-16-4_0.png?itok=Pz2NfZIV 1x" media="all and (min-width: 480px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-12-16-4_0.png?itok=Pz2NfZIV 1x, https://zh-prod-1cc738ca-7d3b-4a72-b792-...k=Pz2NfZIV 2x" media="all and (min-width: 1024px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/2019-12-16-4_0.png?itok=Pz2NfZIV 1x" media="all and (min-width: 768px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/2019-12-16-4_0.png?itok=_g-KYy4s 1x" type="image/png"></source><!--[if IE 9]></video><![endif]--><img data-entity-type="file" data-entity-uuid="8aace569-533a-4ff2-8905-e809614e1ea2" data-responsive-image-style="inline_images" height="234" width="500" src="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/2019-12-16-4_0.png" alt="" typeof="foaf:Image" /></picture></a></p>

<p>We've provided many articles on the evidence of <a href="https://www.zerohedge.com/economics/blain-evidence-cracking-global-supply-chains-fast-emerging">creaking global supply chains fast emerging</a> in China and spreading outwards to places like Asia Pacific countries, Europe, and the US. </p>

<p>Deutsche Bank said last week <a href="https://www.zerohedge.com/markets/deutsche-says-eu-dodges-supply-chain-shock-us-exposed-immediate-impact">Europe is less directly exposed</a> to an initial China supply-chain shock than the US, Canada, Japan, and all the major Asian countries (i.e., India, South Korea, Indonesia, Malaysia, Vietnam).</p>

<p>Still, Europe would be exposed to secondary shocks as the global economy would experience lower trade growth. </p>

<p>Here's a chart that maps out lower dependency and higher dependency countries to disruption from China. </p>

<p><a data-image-external-href="" data-image-href="/s3/files/inline-images/DB%20FIG%204_1.png?itok=_oduwGDm" data-link-option="0" href="https://www.zerohedge.com/s3/files/inline-images/DB%20FIG%204_1.png?itok=_oduwGDm"><picture><!--[if IE 9]><video style="display: none;"><![endif]--><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/DB%20FIG%204_1.png?itok=lvUqyt0u 1x" media="all and (min-width: 1280px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/DB%20FIG%204_1.png?itok=lvUqyt0u 1x" media="all and (min-width: 480px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/DB%20FIG%204_1.png?itok=lvUqyt0u 1x, https://zh-prod-1cc738ca-7d3b-4a72-b792-...k=lvUqyt0u 2x" media="all and (min-width: 1024px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/DB%20FIG%204_1.png?itok=lvUqyt0u 1x" media="all and (min-width: 768px)" type="image/png"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/DB%20FIG%204_1.png?itok=_oduwGDm 1x" type="image/png"></source><!--[if IE 9]></video><![endif]--><img data-entity-type="file" data-entity-uuid="ac9c80f3-cd78-4112-b2ff-857338ad6424" data-responsive-image-style="inline_images" height="338" width="500" src="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/DB%20FIG%204_1.png" alt="" typeof="foaf:Image" /></picture></a></p>

<p>To summarize, the deadly virus has now arrived in Europe, specifically in Italy and France – it comes at a difficult time for the region as recession risks flourish. The European Central Bank's monetary cannon is widely exhausted and could fail in a bid to shore up the content's economy.</p>
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<span rel="schema:author" class="field field--name-uid field--type-entity-reference field--label-hidden">
<a href="https://www.zerohedge.com/users/tyler-durden">Tyler Durden</a>
</span>
<span property="schema:dateCreated" content="2020-02-25T07:45:00+00:00" class="field field--name-created field--type-created field--label-hidden">Tue, 02/25/2020 - 02:45</span><img src="http://feeds.feedburner.com/~r/zerohedge/feed/~4/bjvOjtYA3a8" height="1" width="1" alt=""/>


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