In the first quarter of this year, INSEE had noted a drop in GDP and economists expected a rebound. But by no means that important. According to the first estimate from INSEE, GDP increased by 0.5% in the spring. Twice as expected.
If this estimate is confirmed, Bercy can count on a growth projection of 2.5%. Consequently, even if GDP is content to hold steady for the last six months of the year, Bruno Le Maire’s latest growth forecast for 2022 will not be negated.
The mana of foreign tourists on the rise
This revival of economic activity, France is mainly due to foreign tourists. Its big comeback in France is reflected in a strong increase in spending (+8.6% compared to the second quarter of 2021). Thanks to them, hotels and restaurants have grown again (+6.7%) while in the first three months of the year they had faced a drop in activity (-2.1%).
Foreign tourists are also very present on planes and trains. INSEE estimates growth in the second quarter of +3.8% in this sector of activity. And the observation of the statistical institute is reflected in the financial results of the companies in question.
SNCF and Air France return to profit
Thus, all signs have turned green for SNCF, which shows a strong increase in turnover (+27%) in the first six months of the year as well as profits approaching one billion euros. Same positive trend for Air France-KLM, with, for the first time since the start of the covid crisis, accounts that are not in the red.
The number of passengers carried in the second quarter by the group’s companies (Air France, KLM, Transavia and Hop!) increased by 224% compared to spring 2021. Their turnover increased by 144% in the same period. And all these numbers are much better than expected. A financial performance that Ben Smith, CEO of Air France-KLM, also dedicates to the staff whose “dedication” and “sense of collective responsibility” he salutes.
A way of thanking the Air France and KLM unions for not having called a strike when the main internal social movements have harshly penalized their competitors, also affected by staff shortages and work stoppages at certain airports. For the moment, only Transavia traffic has been affected by a call to stop works in mid-July.
Source: BFM TV
