French Economy Grows 0.5% in Q2


French GDP advanced 0.5 percent on quarter in the three months to June 2017, in line with market expectations and the same pace as in the prior two periods, the preliminary estimate showed. It was the fourth straight quarter of expansion, mainly driven by household consumption, government spending and exports while fixed investment increased at a slower pace.

Final domestic demand excluding inventory changes contributed 0.4 percentage points to GDP growth, the same as in the previous quarter, as household consumption grew 0.3 percent (0.1 percent in Q1 2017) and government expenditure went up 0.4 percent (0.3 percent in Q1). Gross fixed capital formation rose at a slower 0.5 percent after a 1.4 percent advance in Q1. Meanwhile, changes in inventories contributed negatively to growth (-0.6 percentage points after 0.7 percentage points in Q1).

Foreign trade balance contributed positively to GDP growth (0.8 percentage points after -0.6 percentage points in Q1), as exports bounced back (3.1 percent after -0.7 percent in Q1) while imports rose at a slower pace (0.2 percent after 1.2 percent).

Year-on-year, the economy advanced 1.8 percent, following a 1.1 percent growth in the previous period. It was the strongest pace of expansion since the third quarter of 2011.

Insee l Rida Husna | rida@tradingeconomics.com
7/28/2017 10:13:40 AM