France could post “slightly positive” growth in the third quarter after a second quarter above expectations, the Banque de France anticipated in its monthly economic report on Tuesday.
“The activity continues to resist”
The economic report, the result of a survey of 8,500 companies and establishments between the end of July and the beginning of August, shows, according to the institution, that “activity continues to resist” in a difficult environment.
The data available to the institution at the moment is highly fragmented but points to stability in the gross domestic product (GDP) for July compared to the previous month. This is explained by a slight drop in activity in industry and construction, offset by an increase in market services, details the Banque de France in its monthly report.
uncertain prognosis
“The first signs suggest that this stabilization will continue in August,” he continues, while stressing that this forecast is uncertain since the month has just begun, and highlights the contrasts according to sectors.
All economic signs lead the Banque de France to say that growth could be “slightly positive” on a quarterly basis in the third quarter. French growth had regained color throughout the second quarter, rising by 0.5% according to a first estimate published by INSEE at the end of July, and which remains to be confirmed at the end of August.
This is explained by a clearly positive contribution of foreign trade to growth. The government forecasts growth of 2.5% in 2022, slightly more than the INSEE and the IMF, which have 2.3%.
Source: BFM TV
