'Spectacular rebound' as French economy swells by 7 percent

France posted its strongest growth in five decades last year, hitting 7 percent as the economy bounced back from the Covid-19 crisis faster than expected, data showed on Friday.

The latest figures for French economic growth are undoubtedly a bonus for the President less than three months before he is expected to run for a second term. AFP - DENIS CHARLET

The strongest boom in a generation gives President Emmanuel Macron's economic credentials a boost less than three months from an April election in which he is widely expected to run for a second term.

The economy grew 0.7 percent in the final three months of the year after a particular strong third quarter when it grew 3.1 percent, the INSEE statistics agency said in a preliminary report.

The better-than-expected end to 2021 represents the strongest growth in France since 1969.

In 2020, when strict coronavirus lockdowns were in force, the economy shrank by 8 percent. While France has not altogether caught up, Finance Minister Bruno Le Maire was jubilant about the latest figures.

"The French economy has rebounded spectacularly and that's erased the economic crisis," he told France 2 television.

"There are still some sectors that are still having trouble, like tourism and hotels, but most are recovering very strongly and that's creating jobs."

Earlier this month, Le Maire forecast the French economy would grow by 4 percent in 2022, despite the shadow of the Omicron variant, which has pushed new Covid infection rates to record levels in France's fifth wave.

Presidential boost

"All told, the economic stage is set for April’s presidential election. Macron will clearly be pleased with the 2021 GDP numbers," Capital Economics senior Europe economist Jessica Hinds said.

"But whether Macron can convince the French electorate to give him another five years is still not a done deal."

Macron has yet to officially declare himself a presidential candidate, but polls indicate he has a lead over the closest contenders from the conservatives and far right – who are trying to push identity politics and security to the fore of the election debate.

(with Reuters)

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