France's economic activity close to pre-epidemic level: central bank

FILE PHOTO: A pedestrian passes the Banque de France in Paris, France. /Getty Images

France's economic activity ran at one to 1.5 percent below normal levels in July, nearing the pre-coronavirus epidemic levels as the services sector nudged higher due to eased sanitary rules, the central bank BdF said on Monday.

In its monthly economic report, the bank confirmed a positive economic trend in the country, notably due to continued improvement in hotels, restaurants, transport, leisure and cultural activities.

In July, the services sector, worst-hit by restrictions, was "increasing significantly" after a return to normal. The level of activity in the restaurant business rose to 79 percent of the level considered normal, against 69 percent in the previous month, while in accommodation, it reached 72 percent after 54 percent in June.

Activity is expected to be stable overall in August, although food services are likely to see a decline due to the health pass required to enter bars and restaurants, according to the central bank.

It expected the French economy to grow by 5.8 percent for the whole year of 2021, lower than the government forecast of 6 percent.

In 2020, France's economy shrunk by eight percent, its worst recession since World War II after the epidemic has taken a toll on domestic economic activities.

Source(s): Xinhua News Agency