French Q1 GDP Growth Revised Up To 0.4%


The French economy expanded 0.4 percent quarter-on-quarter in the first quarter of 2017, stronger than a preliminary reading of 0.3 percent but slower than a 0.5 percent growth in the previous period. Fixed investment and government spending were the main drivers of growth while household consumption slowed.

In the first quarter of the year, total gross fixed capital formation grew by 1.2 percent (0.5 percent in Q4 2016), boosted by rising investment from non-financial corporations (1.9 percent from 0.9 percent in Q4) and households (1 percent from 0.9 percent in Q4) while government investment contracted (1.2 percent from -1.5 percent in Q4). Also public spending advanced 0.3 percent, the same as in the previous period, and household consumption rose 0.1 percent, slowing sharply from a 0.6 percent gain in Q4. Final domestic demand (excluding changes in inventories) contributed 0.4 points to GDP growth, down from 0.5 points in the prior quarter; and changes in inventories contributed 0.7 points (after -0.2 points in the prior three months).

The foreign trade balance contributed negatively to GDP growth (-0.7 points from +0.1 points in Q4), as exports declined by 0.8 percent (1 percent in Q4), while imports went up 1.4 percent (0.6 percent in Q4). 

Year-on-year, the GDP grew by 1.0 percent, faster than a preliminary estimate of 0.8 percent but slower than a 1.2 percent growth in the previous period. 

Insee l Rida Husna | rida@tradingeconomics.com
5/30/2017 10:07:39 AM