In 2020-Q4, the second wave of the COVID-19 pandemic has decreased the GDP of France both relative to the previous quarter and to the same quarter of the previous year. This drop is caused by a sharp decline in private consumption, cushioned by an increase in investments and exports, relative to the third quarter of the year. However, GDP components are still significantly lower than their pre-crisis levels. The OECD predicts annual growth rates of the French GDP of more than 4% in 2021. The unemployment rate decreased slightly compared to the previous quarter to 8.13%. According to the OECD economic outlook, unemployment will increase up to 10.5% in 2021, when government-financed short-time work arrangements will be scaled down, and will be followed by a gradual decline, as economic activity transits towards normality. Prices are relatively stable.

April 2021