The French economy showed positive growth in the first quarter, slightly exceeding analysts’ expectations. Preliminary data from INSEE statistics agency revealed that the country’s second-largest economy increased by 0.2% in the first three months of 2023, following a 0.1% growth in the fourth quarter of 2023.
Household spending growth accelerated to 0.4% in the first quarter, compared to 0.2% in the previous quarter. A Reuters poll of economists had predicted an average growth of 0.1% in gross domestic product (GDP) for the first quarter, with estimates ranging from 0.0% to +0.2%. However, the actual growth was higher than expected and fell within the Bank of France’s forecast announced in early April.
Overall, household spending played a significant role in driving economic growth in the first quarter. The data suggests that positive momentum is likely to continue throughout the year as France continues to recover from economic challenges posed by COVID-19 pandemic.
The French economy has shown positive signs after experiencing slight growth in Q1 compared to analysts’ expectations. Preliminary data from INSEE statistics agency indicated that GDP increased by 0.2%, while household spending grew by 0.4%, compared to a predicted average increase of only 0.1%. The Bank of France had also forecasted a similar increase for Q1.
In conclusion, while there were concerns about economic recovery following last year’s recession, these concerns have been alleviated with Q1 results showing slight economic growth that exceeded analysts’ expectations and was aligned with Bank of France’s forecasting.
