The Banque de France forecasts “slightly positive” growth for the third quarter
According to the institution, activity “remains resilient” in a difficult environment due to the decline in activity in industry and construction.
France could see growth”slightly positiveBetter than expected in the third quarter after a second quarter, the Banque de France forecast in its monthly economic report on Tuesday. “With the results we have today and the expectations based on the July acquis, we can expect a slightly positive growth rate in the third quarter,” said the Banque de France during a press conference.
According to the institute, the economic report, the result of a survey of 8,500 companies and businesses between the end of July and the beginning of August, shows that “Activity continues to resistin a difficult environment. The data available to the institute are currently very fragmented, but indicate that the gross domestic product (GDP) in July was stable 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, explains the Banque de France in its monthly report.
French growth is regaining color
“Initial signals indicate that this stabilization will continue in August‘, she continues, but stresses that this forecast is uncertain as the month has just started and highlights the differences between sectors. All economic signals lead the Banque de France to state that growth “slightly positive» as a quarterly variation in the third quarter.
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French growth regained color in the second quarter, rising by 0.5% according to a first estimate published by INSEE at the end of July, which is yet to be confirmed at the end of August. This can be explained by a clearly positive growth contribution from foreign trade. The government expects growth of 2.5% in 2022, slightly ahead of INSEE and the IMF, which expect 2.3%.