French GDP Growth Fastest in 2-Years


The French economy advanced 0.6 percent in the first quarter of 2015, picking up from a revised stagnation in October to December period and beating market forecasts. It is the fastest expansion since the second quarter of 2013, mainly driven by consumption expenditure.  

According to preliminary report from INSEE, households’ consumption expenditure surged by 0.8 percent in the first quarter, following a 0.1 percent growth in the previous period. Government expenditure expanded by 0.4 percent, slowing from a 0.5 percent growth in the preceding quarter. In contrast, total gross fixed capital formation declined by 0.2 percent, following a 0.4 percent contraction in the December quarter. Final domestic demand (excluding changes in inventories) markedly improved and contributed 0.5 points to GDP growth (after 0.1 points in the preceding quarter).

Exports expanded by 0.9 percent, slowing from a 2.5 percent expansion in the previous quarter while imports accelerated 2.3 percent, from a 1.5 percent growth in the last quarter of 2014. In fine, the foreign trade balance contributed negatively to activity (–0.5 points after +0.2 points in the previous quarter). In contrast, changes in inventories contributed positively: +0.5 points after –0.3 points at the end of 2014.

French GDP Growth Fastest in 2-Years


INSEE l Rida Husna l rida@tradingeconomics.com
5/13/2015 7:45:01 AM