Gross domestic product (GDP) rebounded in Q2 2021 (+0.9%), after being stable (0.0%) in Q1. GDP closed more than one fifth of the gap to its pre-crisis level remaining at the end of 2020: in Q2 2021, GDP stood 3.3% below the level of Q4 2019, as compared to 4.2% in the two previous quarters.

Final internal demand (excluding inventory changes) made a positive contribution to GDP growth this quarter (+0.9 points after +0.1 points in the previous quarter). Gross fixed capital formation (GFCF) accelerated (+1.1% after +0.4%), as households’ consumption expenditure (+0.9% after +0.2%).

In Q2 2021, imports (+1.9%) increased more than exports (+1.5%). Overall, foreign trade made a slightly negative contribution to GDP growth this quarter: –0.1 points, after –0.5 points in the previous quarter. Lastly, the contribution of inventory changes to the growth of the GDP was slightly positive this quarter (+0.2 points after +0.4 points in Q1 2021).

Total production of goods and services recovered this quarter: : +1.3%, after +0.1%. Notably, production in market services accelerated strongly in Q2 2021 (+2.0% after +0.1%), especially in hotel and restaurant services after their gradual reopening (+29.1 % after –14.0%). Construction also accelerated (+1.5% after +1.0%) and the production of goods rebounded (+0.6% after –0.2%), notably manufacturing goods (+0.5% after +0.1%). Finally, the production of non-market services fell slightly (–0.2% after +0.2%).

In Q2 2021, total production partially catched up with its pre-crisis level (–3.0% from Q4 2019, after –4.3% in the previous quarter). Sectoral disparities were still significant, but were reducing. Among the branches that were well below their pre-crisis level, the production of market services closed its gap the most (–3.9% in Q4 2019, after –5.8% in the previous quarter), due to the strong rebound of the hotel and restaurant industry. The catch-up was more moderate in the manufacturing branches (–5.3% after –5.7%), while construction continued its walk towards its pre-crisis level (–1.8%, after –3.2%).

Household consumption expenditure increased again this quarter (+0.9% after +0.2%). In particular, household consumption of hotel and restaurant services rebounded sharply (+42.8% after –22.1%), due to the gradual reopening of bars and restaurants. Similarly, consumption of transport services accelerated sharply (+11.4% after +2.8%), due to the recovery of people mobility. On the other hand, household consumption of manufactured goods contracted sharply (–4.7% after +0.3%), mainly because of the closure of 'non-core' shops during the third national lockdown. Overall, household consumption partially filled the gap to its pre-crisis level, but was still far away from it (–5.9% compared to Q4 2019, after –6.7% in the previous quarter), with a first half of quarter marked by the continuation of sanitary measures and the third lockdown.

Total GFCF accelerated this quarter (+1.1%, after +0.4% in the previous quarter), under the effect of construction (+1.8%, after 1.1%), and market services (+1.3% after –0.6%). On the other hand, GFCF in manufactured goods fell slightly (–0.4%) after the rebound recorded in the first quarter (+0.8%). In the second quarter of 2021, total GFCF thus slightly exceeded its pre-crisis level: +0.3% compared to the level of Q4 2019, after –0.8% in the previous quarter.

In Q2 2021, imports accelerated (+1.9% after +1.1%), particularly in industrial goods (+2.0% after +1.3%). In particular, imports of pharmaceutical products were particularly dynamic. Exports also grew again (+1.5% after –0.5%). Exports of transport equipment rebounded notably (+5.5% after –9.0%), and exports in food and agricultural products accelerated (+5.6% after +3.3%). As imports were more dynamic than exports, the contribution of foreign trade to GDP growth was slightly negative this quarter (–0.1 points, after –0.5 points in the previous quarter).

Despite its increase this quarter, foreign trade remained well below its pre-crisis level: –8.9% below Q4 2019 for exports, after –10.2% in the previous quarter; –5.7% for imports, after –7.5%.

Inventory changes made a small contribution to GDP growth this quarter (+0.2 points, after +0.4 points in Q1 2021).

The GDP growth estimate for Q1 2021 is revised upwards by 0.1 points. This revision is due to the integration of new data, and to the revision of existing indicators. The quarterly profile of growth in 2020 is revised, with year-on year evolution unchanged. This follow methodological improvements notably on the estimation of activity in construction. In addition, the quarterly profile of household gross disposable income is slightly revised in 2020, with year-on year evolution unchanged, to better take into account the profile of payments from the Unédic part of partial activity. Finally, in the first quarter of 2021, non financial corporations’profit ratio (NFCs) was revised by +1.3 points, to 36.1%, following the revision of the added value and the update of data on the Solidarity Fund payments.