Paris, Aug 10 (IANS): The French economic activity ran at 1 to 1.5 per cent below normal levels in July, nearing the pre-coronavirus pandemic levels as the services sector nudged higher due to eased sanitary rules, the central bank said.

In its monthly economic report released on Monday, the Banque de France confirmed a positive economic trend in the country, notably due to continued improvement in hotels, restaurants, transport, leisure and cultural activities, reports Xinhua news agency.

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 per cent of the level considered normal, against 69 per cent in the previous month, while in accommodation, it reached 72 per cent after 54 per cent 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 per cent for the whole year of 2021, lower than the government forecast of 6 per cent.

In 2020, France's economy shrunk by 8 per cent, its worst recession since World War II after the pandemic has taken a toll on domestic economic activities.