Paris (AFP)

The French economy rebounded in the second quarter, with a 0.9% increase in gross domestic product (GDP), a little better than expected, over a period marked both by the third confinement and the gradual lifting of restrictions, according to a first estimate from INSEE on Friday.

The GDP "is approaching its pre-crisis level", underlines the National Institute of Statistics, which also indicates to have revised slightly upwards the evolution of the GDP in the first quarter, now considered stable, and not declining 0.1%, as reported at the end of May.

INSEE expected growth to rebound by 0.7% in the second quarter, while the Banque de France expected around + 1%.

Growth benefited from an acceleration in investment (+ 1.1%) and household consumption (+ 0.9%), in particular in accommodation and food services and transport services, due to the reopening of bars and restaurants and resumption of travel.

However, consumption remains "well below its pre-crisis level", specifies INSEE, having been further penalized by the closures of so-called non-essential shops, which has reduced purchases of manufactured goods.

On the production side, the activity of market services accelerated sharply (+ 2% after + 0.1% in the first quarter, in particular in the hotel and catering industry (+ 29.1% after -14%).

The production of goods rebounded (+ 0.6% after -0.2%), while construction continued to recover.

Conversely, foreign trade continued to weigh on growth, imports still growing faster than exports.

For the year as a whole, INSEE expects growth of 6%, after the 8% recession suffered in 2020, a forecast similar to those of the government and the European Commission.

The Banque de France is anticipating growth of 5.75%.

© 2021 AFP