In the second quarter of 2022, GDP rebounded in volume terms* (+0.5% in quarterly variation, after -0.2% in Q1 2022). Household consumption expenditure grew (+0.3% after -1.2%), especially in accommodation and food services (+13.4% after -2.6%). Gross fixed capital formation (GFCF) slowed down this quarter (+0.2% after +0.4%). Overall, final interior demand excluding inventories contributed positively to GDP growth by +0.2 points (after -0.5 points in Q1).

Foreign trade slowed for the second quarter in a row. Exports remained dynamic (+0.9% after +1.8%) while imports stabilized (+0.0% after +1.9%). Thus, the contribution of foreign trade to GDP growth was positive this quarter: +0.3 points, after -0.1 in the previous quarter.

Finally, the contribution of inventory changes to GDP growth was slightly positive this quarter (+0.1 points after +0.4 points in Q1 2022).

* Volumes are measured at previous year's prices, chain-linked and adjusted for seasonal variations and working day effects (SVC-WD).

Household gross disposable income (GDI) in current euros bounced back in Q2 2022 (+0.8% after -0.3%). The wage bill received by households was again dynamic (+1.2% after +1.3%): salaried employment continued to grow (+0.3% after +0.4%) as did the average wage per capita (+0.8% after +0.9%). In addition, tax levies slowed down significantly (+0.2% after +4.0%). Social benefits in cash decreased slightly (-0.2% after -1.6%).

At the same time, household consumption deflator accelerated again (+1.9% after +1.4%). Therefore, the purchasing power of GDHI fell again this quarter (-1.1% after -1.6%). Measured per consumption unit to be brought back to an individual level, it dropped by 1.2% (after -1.8%).

The household savings rate fell sharply: it stood at 15.5%, after 16.7% in Q1 2022. Household consumption expenditure in value terms increased by 2.2% this quarter, significantly more than their gross disposable income (+0.8%). The savings rate nevertheless remained slightly above its average level in 2019 (15.0%).

Total hours worked increased by 1.2% in the second quarter (after -0.2%). Hours worked rebounded, mainly due to a decrease of sick leave after the Covid-19 epidemic at the beginning of the year. Similarly, the use of partial activity is again slightly down this quarter. Finally, total employment continued to grow (+0.4%, as in Q1).

In the Q2 2022, non financial corporations’ profit ratio rebounded slightly: it stood at 32.2%, after 31.7% in the first quarter of 2022. This rebound is the result of wage growth being less dynamic than consumption deflator, while productivity per worker remained virtually stable and terms of trade did not contributed to the profit ratio this quarter.

In Q2 2022, the general government borrowing requirement dropped by 0.2 points. It stood at 3.9% of GDP, after 4.1% in Q1. It remained significantly higher than its level before the Covid-19 crisis (3.1% in 2019 and 2.3% in 2018). Government revenues increased by €5.2bn, driven by very high corporate tax revenues this quarter. Government expenditure increased by €4.2bn, mainly because of an increase in subsidies resulting from the implementation of a discount on fuel pump prices and in interest payments related to inflation-indexed debt securities.

The growth of GDP in Q2 2022 is confirmed at +0.5%, as in the first estimate.

As part of the reporting of the general government debt and deficit to the European Union, the annual accounts are updated each year at the end of August to take into account the latest data from the social security funds and revisions that may affect the general government account. The annual public finance tables have thus been updated and are available at the following link: https://www.insee.fr/en/statistiques/6439429?sommaire=6439453.