The French economy performed better than expected in the second quarter. After stagnating in the first quarter, GDP grew by 0.9% between April and June, according to the first estimate published this Friday by Insee. This is 0.2 percentage points more than what the institute forecasted at the beginning of July.
This supports the government’s forecast of 6% growth — instead of 5% — for this year.
The best news came from investment, which accelerated (+1.1% after +0.4% at the start of 2021),
Consumption also contributed to growth. Spending progression accelerated (+0.9% after +0.2%) due to the lifting of lockdown measures, which led to a very strong rebound in accommodation and restaurant spending thanks to the gradual reopening of bars and restaurants (+42.8% after -22.1%) and an 11.8% increase in transport services with the resumption of travel.
