In 2009, the borrowing requirement of non-financial corporations and households declined,whereas general government sharply increased issuance to meet its rising fi nancing needs.

In 2008, the economic downturn and financial pressures significantly impacted the borrowing and investment behaviour of non-financial agents. Households favoured liquid and low-risk savings instruments. Households and fi rms reduced bank borrowings but their debt ratios rose further.

This paper describes a short-term projection model for French economic activity, OPTIM, the aim of which is twofold. First it gives an early estimate of real GDP growth for the previous quarter, when no figure has yet been released by Insee, the French National Statistical Institute, along with...