French Q2 GDP Growth Matches Estimates


The French economy advanced 0.5 percent quarter-on-quarter in the June quarter of 2017, the same pace as in the previous two quarters and in line with the second estimates, final figures showed. It was the fourth straight quarter of expansion, driven by household consumption, government spending and exports while fixed investment rose at a slower pace.

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

Household consumption increased by 0.3 percent, faster than a 0.1 percent rise in the prior three-month period. Government expenditure went up by 0.4 percent, following a 0.3 percent rise in Q1. Meanwhile, gross fixed capital formation rose at a slower 0.9 percent after a 1.4 percent  growth in Q1.

Exports rebounded  (2.4 percent after -0.8 percent in Q1) while imports rose at a softer pace (0.3 percent after a 1.2 percent rise in the March quarter).

Year-on-year, the economy expanded 1.8 percent, slightly above the preliminary estimate of 1.7 percent and following a 1.1 percent growth in the previous period. It was the strongest pace of expansion since the September quarter 2011.

Insee l Rida Husna | rida@tradingeconomics.com
9/22/2017 7:09:16 AM