During the fourth 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 5.42%. Inflation registered a year-on-year variation of 2.73% in the fourth quarter of 2021. Regarding the labour market, the unemployment rate slightly decreased to a 7.20% from the previous quarter, while the year-on-year rate of employment creation declined to 2.08% during the third quarter. The euro depreciated against the dollar during 4Q21 and recorded an average exchange rate of 1.14 $/€.


Macroeconomic outlook report: France 4Q21

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Macroeconomic Overview

  • During the fourth quarter of 2021, the French economy accelerated its growth with respect to the previous quarter. Thus, the year-on-year change in GDP increased by 1.87 p.p. compared to 3Q21, to 5.42%.
  • The economic recovery was consolidated by the progress in vaccination and easing of sanitary restrictions against the pandemic, although at a slower pace than in the previous quarter due to supply chain problems.
  • Regarding the labour market, the unemployment rate decreased compared to the previous quarter, standing at an 7.20% rate. On the other hand, the employment variation rate decreased by 1.32 p.p. during 3Q21 compared to the previous quarter, down to a rate of 2.08%.
  • During the fourth quarter of 2021, the euro depreciated against the US dollar compared to the previous quarter. The average nominal exchange rate for the period stood at 1.14 $/€.
  • During 4Q21, the y/y growth of the Consumer Price Index increased by 0.97 p.p. compared to 3Q21, up to a rate of 2.73%.

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