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In the third quarter of 2021, growth in France reached 3%, unheard of for nearly half a century. The French economy has returned to its pre-Covid level, according to INSEE. Unemployment is falling and weakened businesses are keeping themselves alive. Miracle or mirage? Explanations.
For the third quarter of 2021, French growth jumped, + 3%. A figure that had not been recorded since 1968. And yet, some signals remain worrying. Growth is driven by household consumption, which has risen sharply this quarter. “I have put aside enough, which allows young people my age to concentrate on shopping for the home”, explains a client of a bedding store. The brand is even doing better than before the crisis with 33% more turnover compared to 2019.
If companies can keep up with demand and invest, it is partly thanks to state aid. 135 billion euros in guaranteed loans that they have not yet had to repay. While 480,000 employees still benefit from partial unemployment. So is growth sustainable? The recovery is expected to fade in the coming months. “We are going to see if the companies have the kidneys strong enough to be able to repay these guaranteed loans without there being a wave of bankruptcies”, underlines Éric Heyer, economist at OFCE.