According to preliminary data from the INSEE statistics agency, the French economy grew slightly in the first quarter of 2023. This was a surprise to analysts who had expected a slower growth rate. 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 fourth quarter of 2023, according to INSEE’s quarterly GDP report.
Household spending growth also picked up in the first quarter, with a 0.4% increase compared to 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted an average growth of 0.1% in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. Overall, these figures suggest that the French economy is on track for further growth and development in the months ahead.
The Bank of France had announced earlier this year that they expected modest growth for the French economy in Q1, and this data aligns with their expectations. Despite ongoing uncertainties and challenges in the global economic landscape, these stable and somewhat resilient figures suggest that France is well positioned for continued economic success in Q1 and beyond.
In summary, preliminary data shows that France’s economy grew slightly more than expected in Q1, driven by household spending expansion which played a key role in driving this expansion. These figures indicate a positive start to the year for the French economy and set it on track for further growth and development over time.