Banque de France: in January 2021, the economy is still suffering – economy

The latest Banque de France estimates published on Wednesday January 13, 2021, show that French economic activity in January is still 7% lower than the pre-crisis economic situation.

A slightly better economy since December 2020

The month of December 2020 was marked by a slight rebound in the French economy. The Christmas shopping period reduced the pre-crisis economic activity gap to -7%, compared to economic activity in November 2020 that was 11% lower than in 2019. A slight improvement which, according to the estimates of the Banque de France, published on Wednesday January 13, 2021, should stabilize in January 2021.

Despite this slight improvement in December 2020, mainly due to the reopening of stores for the Christmas and New Year celebrations, the Banque de France estimated that the last quarter of 2020 was marked by a 4% decline in revenue. gross domestic (GDP), i.e. a drop of 9% over the whole of 2020.

Thus, the Banque de France estimates that the services sector is the one that performed the greatest good in December with the reopening of 8,500 companies, the industry sector is also experiencing a slight improvement but the building sector is already well revived, remains stable.

Stagnation of the economy in January 2021

The rebound in the economy is not expected to continue in January 2021, however. The Banque de France estimates that economic activity in the service, industry and construction sectors will stabilize. Activity should therefore remain 7% below the pre-crisis level.

However, the Banque de France calls for caution, these figures can only be simple estimates, since they are subject to the vagaries of the epidemic evolution in the territory. However, in the absence of the reopening of certain sectors such as catering, or even winter sports, economic activity risks continuing to stagnate.