French foreign trade: encouraging results for the first half-year 2021

The economic recovery is confirmed: the first figures of France’s foreign trade have just been published and they are promising. According to the French minister in charge of foreign trade and attractiveness who presented the results, French exports in the first quarter 2021 continued to pick up to gradually reach their historical 2019 level, and many key industries now exceed their pre-Covid level.

“The lesson we can learn from this first half-year 2021 is that after an unprecedented crisis, the recovery we managed to kickstart in 2nd half-year 2020 is confirmed”. This is how Franck Riester, French minister in charge of foreign trade and attractiveness commented the first figures of France’s foreign trade.

Goods and services exports on the rise

More specifically, a highly detailed information note provided by the services of the French ministry of foreign affairs shows that after an unprecedented collapse in the first half of 2020 followed by a gradual recovery in the 2^nd half, exports of goods are on the rise in the first half of 2021: +18.4% compared with the first half of 2020, and +6.7% compared with the 2^nd half of 2020. Exports almost reached their pre-crisis level at the end of the semester (in June 2021, at 98% of their average level in 2019).

Similarly, exports of services also rise (+4.7% compared with the first half of 2020), despite “hindrance to international tourism”. In June they reached 99% of their average level in 2019.

An international environment more favourable to recovery

The Ministry information note also shows that after the downturn in 2020 of global business (-3.2% according to the IMF), and trade exchange (-8.3%), the year 2021 should benefit from various factors such as the deployment of vaccination or actions to support the general public. Global growth should reach +6% according to the IMF, and commercial trade +9.7%.

But the trend should be hindered by disruptions in the raw materials, semiconductor and shipping industries, and because of containment measures targeting population movement (tourism, transports, and more).

Positive impacts of the France Relance plan

The France Relance plan (“France Recovery plan”, a 100 billion euros plan, of which 40 billion euros were already engaged in June) should positively weight on the attractiveness and competitiveness of France. The Foreign Trade Minister explained that the export aspect of this plan, mainly targeting SMEs, includes 247 million euros divided between several levers such as direct funding (relance export cheques), funding for “digital tools for export prospect and upgrade of the France brand” or the creation of “industry e-showcases”.

The Minister adds that these exclusive actions “complement the range of emergency support actions for the economy (government-backed loans, partial activity, solidarity funds, financial and social taxes deferral) and industry-specific actions (aeronautics, automobile, tourism) deployed by the government”. Many exporting companies indeed could overcome the “crisis impact” and stay active. There are 132,000 export companies (in late March 2021), which is, according to the Minister, “a 20 years record due to the rise of the number of export small companies”.

To know more: 

- Press release From the Ministry of Europe and Foreign Affairs

- Information note

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