French Q2 GDP Growth Confirmed at 0.5%

The French economy grew 0.5 percent quarter-on-quarter in the three months to June of 2017, in line with the preliminary estimate and the same pace as in the previous two periods. It was the fourth straight quarter of expansion, mainly supported by household consumption, government spending and exports while fixed investment increased at a slower pace.

In the second quarter 2017, the positive contribution to GDP came from final domestic demand excluding inventory changes (0.4 percentage points, the same as in Q1 2017) and net foreign trade (0.6 percentage points after -0.6 percentage points in Q1). In contrast, changes in inventories subtracted 0.5 percentage points from the growth after contributing 0.7 percentage points in Q1.

Household consumption grew by 0.3 percent, faster than a 0.1 percent rise in the prior three-month period; and government expenditure increased by 0.4 percent, following a 0.3 percent rise in Q1. Meanwhile, gross fixed capital formation rose at a slower 0.7 percent after a 1.3 percent advance in Q1.

Exports bounced back (2.5 percent after -0.9 percent in Q1) while imports rose at a softer pace (0.4 percent after 1.1 percent).

Year-on-year, the economy advanced 1.7 percent, slightly below the preliminary estimate of 1.8 percent and 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 |
8/29/2017 10:29:45 AM