According to preliminary data from the INSEE statistics agency, the French economy grew slightly in the first quarter of 2023, surpassing analysts’ expectations. The euro zone’s second-largest economy expanded by 0.2% in the first three months of the year, following a 0.1% growth in the previous quarter of 2023, according to INSEE’s quarterly GDP report.
Household spending growth for the quarter accelerated to 0.4%, up from 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had, on average, predicted a 0.1% growth in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. This positive growth in the French economy indicates a modest recovery and suggests some resilience in the face of economic challenges.
The Bank of France forecasted this growth trend and it is important to monitor future data releases to assess its sustainability and implications for the broader euro zone economy. The French economy has been facing several challenges such as high unemployment rate and slow pace of recovery, but this slight growth is a step towards a better economic outlook.
