GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

6.1

MANAGEMENT REPORT OF THE BOARD

OF DIRECTORS

6.1.1

ENVIRONMENT

The manufacturing sector’s situation improved with an industrial production index that returned to its level seen a year ago. However, it appears that the servicessector has been harder hit by the lockdown measures as suggested by purchasing managers’ indices (PMI). The consensus of economists’ forecasts is that pre-crisis GDP will return only in 2022. As in the United States, political and economic decision-makers have been proactive. The EuropeanUnion made progress towards greater integration by adopting a €750 billion economic recovery plan fundedby commondebt raised by the EuropeanCommission. This measure was in addition to very significant national plans, made possible by the easing of governmentdeficit constraintsand monetary financing from the central bank. The ECB put in place a new, more flexible asset purchase programme, raised to €1,850 billion, which will continue at least until March 2022. There were sharp contrasts among emerging countries. The Chinese economy, the first affected by the pandemic, has already wiped out the contraction of its activity and saw +2% growth in 2020. Emerging Europe is expected to contract moderately by -4%.

Macroeconomic environment 6.1.1.1 In 2020, the Covid-19pandemicand the health measuresadopted to control it caused a contraction of economic activity not seen since the post-war years. Governmentsand central banks adopted unprecedented fiscal and monetary measures to protect and support economies. This resulted in the synchronous launch of unconventional monetary measures and large-scale stimulus packages. In addition, the economic climate continued to provide strong support for the recovery, as evidenced by the rebound in manufacturing activity in the secondhalf of the year after the easing of health restrictions. Eurozone activity experienced an expected GDP contraction to -7.8% in 2020 followed by a rebound of +4.2% in 2021. The divergence between European economies is significant, in connection with a contrasting evolution of the pandemic and different health policies: Germany’s GDP is expected to shrink to -6%, while Spain and France forecastsdecreasesof -12%and -9% respectively.

114 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES