Quarterly national accounts in Q2 2020National accounts in base 2014 - Detailed figures

Detailed figures
Insee Résultats
Paru le : Paru le 28/08/2020
Insee Résultats - August 2020

In Q2 2020, household gross disposable income declined but the savings rate grew significantlyQuarterly national accounts - detailed figures - second quarter 2020

In Q2 2020, real gross domestic product (GDP)* fell sharply: -13.8% after -5.9% in the previous quarter. The decline in GDP during the first half of 2020 reflects the shutdown of “non-essential” activities in the context of the lockdown implemented between mid-March and the beginning of May. The progressive lifting of these restrictions led to a gradual recovery of economic activity in May and June, after the low point reached in April.

Household consumption expenditure dropped (-11.5% after -5.8%), as did total gross fixed capital formation (GFCF) to a greater extent (-14.9% after -10.0%). General government consumption expenditure also decreased (-10.3% after -3.3%). All in all, total domestic demand excluding changes in inventories fell sharply: it contributed -12.2 points to GDP growth.

Exports once more dropped more significantly (-25.0% after -6.0%) than imports (-16.4% after -5.6%) this quarter. Overall, foreign trade balance contributed negatively to GDP growth: -2.5 points after -0.1 points in the previous quarter. Conversely, changes in inventories contributed positively to GDP growth (+0.9 points after +0.5 points).

* Volumes are measured at chain-linked and seasonally and working-day adjusted prices of the previous year (seasonally and working-day adjusted).

Informations rapides

No 216

Paru le : 28/08/2020

Warning

The detailed results of Q2 2020 take into account the economic policy measures that have been implemented to contain the effects of the Covid-19 pandemic, with the information available at this stage. The interpretation of the sectoral accounts as well as methodical changes are detailed in the note attached (in french) to this release. Given the strong developments expected for the following quarters, the overhangs for the year 2020, which imply a null evolution for the rest of the year, cannot be interpreted. As such, they are not published in this estimate.

In Q2 2020, real gross domestic product (GDP)* fell sharply: -13.8% after -5.9% in the previous quarter. The decline in GDP during the first half of 2020 reflects the shutdown of “non-essential” activities in the context of the lockdown implemented between mid-March and the beginning of May. The progressive lifting of these restrictions led to a gradual recovery of economic activity in May and June, after the low point reached in April.

Household consumption expenditure dropped (-11.5% after -5.8%), as did total gross fixed capital formation (GFCF) to a greater extent (-14.9% after -10.0%). General government consumption expenditure also decreased (-10.3% after -3.3%). All in all, total domestic demand excluding changes in inventories fell sharply: it contributed -12.2 points to GDP growth.

Exports once more dropped more significantly (-25.0% after -6.0%) than imports (-16.4% after -5.6%) this quarter. Overall, foreign trade balance contributed negatively to GDP growth: -2.5 points after -0.1 points in the previous quarter. Conversely, changes in inventories contributed positively to GDP growth (+0.9 points after +0.5 points).

* Volumes are measured at chain-linked and seasonally and working-day adjusted prices of the previous year (seasonally and working-day adjusted).

GDP - SA-WDA

GDP - SA-WDA ()
PIB
2005-Q1 492308
2005-Q2 493182
2005-Q3 495712
2005-Q4 499441
2006-Q1 503319
2006-Q2 508386
2006-Q3 508408
2006-Q4 512533
2007-Q1 516271
2007-Q2 520296
2007-Q3 522021
2007-Q4 523207
2008-Q1 525558
2008-Q2 523085
2008-Q3 521448
2008-Q4 514163
2009-Q1 505626
2009-Q2 505098
2009-Q3 505885
2009-Q4 509561
2010-Q1 511524
2010-Q2 514149
2010-Q3 517147
2010-Q4 520757
2011-Q1 526172
2011-Q2 526392
2011-Q3 527892
2011-Q4 529123
2012-Q1 529736
2012-Q2 528720
2012-Q3 529731
2012-Q4 529350
2013-Q1 529228
2013-Q2 532807
2013-Q3 532856
2013-Q4 535484
2014-Q1 536225
2014-Q2 536624
2014-Q3 538905
2014-Q4 539598
2015-Q1 542433
2015-Q2 542238
2015-Q3 544117
2015-Q4 544729
2016-Q1 548562
2016-Q2 547202
2016-Q3 548470
2016-Q4 551659
2017-Q1 556164
2017-Q2 560116
2017-Q3 564040
2017-Q4 568822
2018-Q1 569639
2018-Q2 570727
2018-Q3 572838
2018-Q4 576579
2019-Q1 579726
2019-Q2 581151
2019-Q3 582050
2019-Q4 580907
2020-Q1 546799
2020-Q2 471276

GDP - SA-WDA

  • Source : Insee

GDP and its main components

percentage change from previous period, working-day and seasonally adjusted data
GDP and its main components (percentage change from previous period, working-day and seasonally adjusted data)
2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q2/2019 Q2
GDP 0.2 -0.2 -5.9 -13.8 -18.9
Imports 0.6 -0.8 -5.6 -16.4 -21.2
Household consumption expenditure 0.4 0.3 -5.8 -11.5 -16.1
General government’s consumption expenditure 0.5 0.4 -3.3 -10.3 -12.4
GFCF 1.2 0.2 -10.0 -14.9 -22.4
Exports -0.5 -0.9 -6.0 -25.0 -30.5
Contributions:
Internal demand excluding inventory changes 0.6 0.3 -6.3 -12.2 -16.9
Inventory changes -0.1 -0.5 0.5 0.9 0.7
Net foreign trade -0.3 0.0 -0.1 -2.5 -2.8
  • This growth rate is seasonally and working-day adjusted; volumes are chain-linked previous-year-prices volumes.
  • Source: Insee

Production, consumption and GFCF: main components

percentage change from previous period, working-day and seasonally adjusted data
Production, consumption and GFCF: main components (percentage change from previous period, working-day and seasonally adjusted data)
2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q2/2019 Q2
Production of branches 0.1 -0.4 -5.5 -13.9 -18.9
Goods -0.6 -1.4 -5.6 -16.7 -23.0
Manufactured industry -0.5 -1.6 -6.7 -19.7 -26.7
Construction 0.5 -0.1 -12.5 -20.3 -30.0
Market services 0.2 -0.2 -5.0 -12.4 -16.7
Non-market services 0.4 0.3 -3.7 -12.2 -14.8
Household consumption 0.4 0.3 -5.8 -11.5 -16.1
Food products -0.7 0.3 2.8 -0.5 1.8
Energy -0.4 -1.0 -3.7 -11.7 -16.1
Engineered goods 1.7 1.0 -16.1 -14.3 -26.2
Services 0.4 0.4 -5.7 -15.4 -19.6
GFCF 1.2 0.2 -10.0 -14.9 -22.4
Manufactured goods 1.2 -0.5 -13.0 -18.5 -28.5
Construction 0.9 -0.1 -14.2 -22.0 -32.5
Market services 1.5 1.1 -3.4 -5.6 -6.4
  • Source: Insee

Households’ gross disposable income decreased much less than activity, their savings rate bounced

Household gross disposable income (GDI) decreased markedly (-2.3% after -0.3%, its largest quaterly decrease since 1949). With the extension of the partial activity scheme and the decrease in employment, wages received by households fell sharply (-10.0% after -2.4%). Furthermore, interests and dividends dropped again (-2.9% after -3.7%). This decrease in revenue was however substantially offset by the acceleration of social benefits in cash (+7.9% after +2.3%). This increase is partly due to the payment of partial activity benefits and exceptional solidarity benefits to the most vulnerable households in the context of health emergency, as well as benefits for unemployment and furlough for childcare. Taxes on income and wealth also fell (-8.9% after -2.3%, mainly the social security contribution (CSG) and the income tax). Likewise, social contributions paid by households decreased (-7.3% after -1.7%), due to the decline of labour income.

Household consumption prices declined for the first time since 2017 (-0.2% after +0.2%). Overall, household purchasing power decreased more this quarter: -2.1% after -0.5%. Measured by consumption unit to bring it to an individual level, it dropped by -2.3% (after -0.6%). Meanwhile, household consumption fell markedly (-11.5% after -5.8%), resulting in a sharp rise of the savings rate to 27.4% after 19.7% in Q1 2020 and an average of 14.9% in 2019.

Furthermore, the total amount of hours worked dropped by 15.5% in Q2 (after -4.2%) following the rise in the use of partial unemployment, and to a lesser extent the decrease in employment and over-time hours.

Households’ disposable income and ratios of households’ account

percentage change from previous period, working-day and seasonally adjusted data
Households’ disposable income and ratios of households’ account (percentage change from previous period, working-day and seasonally adjusted data)
2019 Q3 2019 Q4 2020 Q1 2020 Q2 2019
HDI 0.8 0.9 -0.3 -2.3 3.1
HDI (purchasing power) 0.6 0.6 -0.5 -2.1 2.1
HDI by cu* (purchasing power) 0.4 0.5 -0.6 -2.3 1.5
Adjusted HDI (purchasing power) 0.5 0.6 -1.3 -4.5 2.0
Saving rate (level) 14.8 15.1 19.7 27.4 14.9
Financial saving rate (level) 4.4 4.6 10.5 19.5 4.6
  • * cu: consumption unit
  • Source: Insee

Non-financial corporations’ profit ratio continued to fall markedly

In Q2 2020, non-financial corporations’ profit ratio (NFCs) fell again. It stood at 26.0% after 29.2%, a decline of 3.2 points after -4.2 points in Q1. The decrease of NFCs’ value added in Q2 (-17.4%) is indeed only partially offset by the decrease of the wage bill and social contributions. Moreover, the end of the Competitiveness and employment tax credit (CICE) in 2020 had contributed negatively to this ratio in Q1.

Ratios of non-financial corporations’s account

level (in percent), WDA-SA data
Ratios of non-financial corporations’s account (level (in percent), WDA-SA data)
2019 Q3 2019 Q4 2020 Q1 2020 Q2 2019
Profit share 33.3 33.4 29.2 26.0 33.2
Investment ratio 24.7 24.8 24.4 25.8 24.5
Savings ratio 22.9 23.8 19.4 14.6 23.2
Self-financing ratio 92.7 95.8 79.6 56.6 94.7
  • Source: Insee

In Q2 2020, public deficit deteriorated, mainly due to the drop in revenue

In Q2 2020, public deficit increased by 6.4 points, to 11.6% of the GDP after 5.2% in the previous quarter. This deterioration is mostly due to the drop in revenue (-9.3% after -3.4%), which followed the decrease in economic activity (lower amounts owed in VAT, income tax, corporate tax and social contributions, as the deferments are not taken into account in this decline, see methodological note). Meanwhile, government expenditure rebounded slightly (+0.4% after -1.0%); the spending on social benefits and subsidies (solidarity fund) rose significantly, but this increase was weighed down by the effects of lockdown: decrease of in-kind transfers, intermediate public consumption and public investment.

Expenditure, receipts and net borrowing of public administrations

level, WDA-SA data
Expenditure, receipts and net borrowing of public administrations (level, WDA-SA data)
2019 Q3 2019 Q4 2020 Q1 2020 Q2 2019
In billions of euros
Total expenditure 338.3 339.6 336.3 337.6 1348.1
Total receipts 321.5 317.1 306.3 278.0 1275.0
Net lending (+) or borrowing (–) -16.8 -22.5 -30.0 -59.7 -73.1
In % of GDP
Net lending (+) or borrowing (–) -2.8 -3.7 -5.2 -11.6 -3.0
  • Source: Insee

Revisions

The GDP growth estimate for Q2 2020 is confirmed at -13.8%. Revisions in the different aggregates offset each other: they are mainly due to the update and revision of indicators.

Within the framework of the notification of the public debt and deficit to the European commission, the annual accounts are updated each year at the end of August, to take into account the final accounting data of the social security administration, which are not available for the April 1st notification. Additionally some revisions updated the public administration account. The tables of the annual accounts of public finances have been updated and are available at the following link. The quarterly accounts are aligned with this new data.

Further information

Next publication : October 30 2020 at 07:30 am

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Quarterly national accounts

Quarterly debt of the general government

Sources

Quarterly accounts are a consistent set of indicators which provides a global overview of recent economic activity.

Time series of the main aggregates of quarterly national accounts can be accessed through the "Summary". They are classified into eight categories:

  • Gross domestic product (GDP) and main economic aggregates;
  • Goods and services;
  • Households' consumption;
  • Foreign trade;
  • Activities;
  • Institutional sectors;
  • Households' income and purchasing power;
  • Public finances.

For each category, are available :

  • synthetic files displaying from the accounts the relevant information for economic analysis
  • sometimes, one or two files displaying all the data available.