During the first quarter of 2021, the year-on-year variation rate of the French GDP recorded an increase compared to the previous quarter, up to a rate of 1.20%. Economic activity stabilized in the first quarter of 2021, following the decline experienced in the fourth quarter motivated by the introduction of the second lockdown in November. Regarding the labor market, the unemployment rate remained stable compared to the previous quarter, standing at a 7.80% rate, while the year-on-year employment variation rate showed positive growth after four quarters of negative growth, reaching a rate of 1.11%. The euro appreciated against the dollar during 1Q21, and recorded an average exchange rate of 1.21 $/€.

 


Macroeconomic outlook report: France 1Q21

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Macroeconomic Overview

  • During the first quarter of 2021, the French economy recovered from the previous quarter. Thus, the year-on-year change in GDP increased by 5.81 p.p. compared to 4Q20, to 1.20%.
  • The French economy stabilized after the setback suffered during the previous quarter due to the introduction of the second lockdown, reaching positive year-on-year GDP growth after four quarters of negative growth.
  • Regarding the labor market, the unemployment rate remained stable compared to the previous quarter, standing at a 7.80% rate. On the other hand, the employment variation rate increased by 2.27 p.p. compared to the previous quarter, up to a rate of 1.11%.
  • During the first quarter of 2021, the euro appreciated against the US dollar compared to the previous quarter. The average nominal exchange rate for the period stood at 1.21 $/€.
  • During 1Q21, the y/y growth of the Consumer Price Index increased by 0.70 p.p. compared to 4Q20, up to a rate of 0.77%.

For more information, click here to access the executive document in pdf.