The French gross domestic product (GDP) is expected to be “slightly up in the first quarter compared to the previous quarter,” but the level of activity remains 5% below its pre-crisis level in February and March, according to the Bank of France in its economic report released on Monday.
Thus, the level of activity has been capped at 95% of the pre-crisis level, that is, February 2020, since December. This level was at 69% last April before rising to 97% in August, September, and October.
The Bank of France bases its projections on its survey conducted with 8,500 companies from February 24 to March 3, as well as on bank card expenditures, which “remained generally stable in January and February.”
The rate of capacity utilization in the industry increased by one point in February to 76%, compared to 79% before the crisis.
The services sector shows a very slight overall progress, while it remains at a very low level in the hospitality and catering industry.
For the whole of 2021, since December, the Bank of France has been forecasting 5% growth for the French economy.
