Informations Rapides · 25 February 2022 · n° 51

Purchasing power of GDHI per consumption unit bounced back in Q4 2021 (+0.7%) and rose by +1.9% over the year 2021 (after 0.0% in 2020) Quarterly national accounts - detailed figures - fourth quarter 2021

Gross disposable household income (GDHI) accelerated in Q4 2021: +1.6% after +0.8%. In particular, social benefits in cash bounced back strongly (+2.4% after -2.6%) with the payment of the inflation compensation benefit. Moreover, taxes on incomes and wealth went back slightly (-0.2% after +3.5%) due to the pursue of the suppression of the tax on principal residences (first tax deduction for the top 20% of income). Payroll received by household slowed down (+1.2% after +4.5%), after a dynamic third quarter due to the reopening in several activity sectors. Social contributions slowed down accordingly (+0.8% after +2.6%). Over the year 2021, GDHI rose by +4.0% after +1.0% in 2020.

The households’ consumption deflator remained dynamic during Q4 (+0.8% as in Q3), but less than GDHI. Thus, purchasing power bounced back this quarter (+0.8% after 0.0%). Over the year 2021, it grew by 2.3% (after +0.4% in 2020) dragged by the strong rebound of the activity income and a modest decline of the social benefits. When measured by consumption unit to be brought back at an individual level, it grew by +0.7% in Q4 (after -0.1% in Q3) and clearly bounced back over the year (+1.9% over 2021 after 0.0% in 2020).

Households’ consumption expenditure grew (+0.5%) at a slower pace than the purchasing power. This led to a slight rebound of households’ saving rate, which stood at 17.4% after 17.2% in Q3. On average, it remained at a very high level in 2021 (19.5%) after a 1.9 point drop from its historically high level of 2020 (21.4%).

Total worked hours increased by 0.9% this quarter after a very dynamic third quarter (+4.7 %) marked by the reopening in several economic sectors. In Q4, total worked hours overtook their pre-crisis level (+0.6% when compared to Q4 2019). In 2021, worked hours rebounded sharply (+7.4% after -9.1%).

In Q4 2021, non financial corporations’ profit ratio went slightly down (32.8% after 32.9%). Its decline was mainly due to a decrease of grants payed to company, notably the Fund of Solidarity.

On average over the year, non-financial corporations’ profit ratio increased by 2.4 points and reached a historically high level (34.0% after 31.7% in 2020).

In Q4 2021, GDP grew by 0.7 % and overtook by 0.9% its pre-crisis level (when compared to its level in Q4 2019). On average over the year, the economic activity rebounded strongly : +7.0% in 2021 after -8.0% in 2020. This estimate of the annual growth and of other annual aggregates by the sum of the four quarters will be consolidated at the end of may 2022 with the publication of the provisory account for 2021.

The different contributions to the GDP’s growth are relatively homogeneous this quarter. The interior demand (excluding stock) contributed to its growth by +0.5 points, after +3.5 points in the previous quarter: it can be noted that the growth rate of households’ consumption expenditures (+0.5% after +5.5%) was similar to the one from the total gross fixed capital formation GFCF (+0.6% after 0.0%).

Foreign trade, which remained in a recovery state, grew faster than the interior demand. The increase is more marked for imports (+3.9% after +1.0%) than for exports (+3.1% after +1.7%). Thus, the contribution of foreign trade to the GDP’s growth was slightly negative this quarter: -0.3 points after +0.2 points in Q3. Finally, the contribution of the inventory changes to GDP growth was positive this quarter (+0.5 points after -0.6 points in Q3 2021).

The GDP growth estimate in Q4 2021 and across the year is confirmed. Some slight revisions of different aggregates compensated each other: they are mainly due to revisions of indicators. Some minor revisions in Q1 2021 lead to a revised rounded number of GDP growth (+0.2% against +0.1% in Q1 2021 at the previous publication).