The rebound of the French economy stronger than expected in the second quarter

The Banque de France on Wednesday raised its forecast for growth of the French economy in the second quarter.

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The Banque de France on Wednesday July 7 revised its forecast for growth of the French economy in the second quarter significantly upwards, to around + 1%, against + 0.5% previously, estimating that the lifting of health restrictions had allowed a rebound in activity greater than expected. Even if it notes an increase in supply and recruitment difficulties for companies, the central bank has maintained its growth forecast for the whole of 2021 at 5.75%, deeming the French economy rather resilient in the face of a possible fourth wave of the Covid-19 epidemic.

The European Commission on Wednesday raised its growth forecast for France to 6% for 2021, like INSEE last week. The French government remains on a forecast of 5% at this stage. The Banque de France forecast for the whole year is “rather a cautious forecast” and would therefore remain suitable in the event of a new wave, explained Olivier Garnier, the director general of the French central bank, presenting to the press the latest monthly economic survey of the institution.

On the other hand, “we have seen over the epidemic waves that the economic impact was less and less marked, both because the economy knows how to adapt better (…) and above all, today there is the vaccination”, he detailed.

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