• France’s economy expands more than initially thought in Q2

Market news

31 August 2021

France’s economy expands more than initially thought in Q2

INSEE reported on Tuesday that the French economy expanded more than initially estimated in the second quarter of 2021.

According to the final estimate, France’s gross domestic product (GDP) grew 1.1 percent q-o-q in the second quarter, slightly better than a 0.9 percent q-o-q advance reported in the initial estimate. Still, the country’s GDP remained 3.2 percent below its pre-pandemic level.

Economists had expected the growth rate to stay unrevised at 0.9 percent q-o-q, after being unchanged q-o-q in the first quarter.

The data showed the household consumption rose 1.0 percent in the second quarter, following a flat performance in the previous quarter. Meanwhile, fixed investment increased 2.4 percent after a 0.4 percent gain in the first quarter. Inventory changes added 0.1 points to GDP Q2 growth, while foreign trade subtracted 0.2 points as imports increased more than exports.

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