French Q1 GDP Growth Revised Up To 0.5%


France GDP advanced 0.5 percent quarter-on-quarter in the March quarter of 2017, the same pace as in the prior quarter but slightly stronger than a 0.4 percent growth in the second estimates, final figures showed. It was the third straight quarter of expansion, mainly supported by fixed investment and government spending while household consumption stalled.

In the three months to March 2017, household consumption was flat, following a 0.6 percent rise in the previous quarter. Government expenditure went up 0.3 percent, unchanged from the prior quarter. Total gross fixed capital formation grew by 1.2 percent, compared to a 0.7 percent growth in the fourth quarter. Final domestic demand (excluding changes in inventories) contributed 0.4 points to GDP growth, down from 0.6 points in the prior quarter.

Exports declined by 0.7 percent, following a 1.1 percent rise in the December quarter. Imports went up at a faster 1.2 percent (from 0.6 percent increase in the preceding quarter). The foreign trade balance contributed negatively to the economy (-0.6 points after 0.1 points in the fourth quarter). In contrast, changes in inventories contributed positivevely: 0.7 points after -0.2 points in the December quarter.

Year-on-year, the GDP grew by 1.1 percent, compared to a 1.2 percet expansion in the fourth quarter but slightly above an earlier estimate of 1 percent growth.

Insee l Rida Husna | rida@tradingeconomics.com
6/23/2017 7:05:29 AM