French GDP Stagnation Confirmed in Q2


The French economy recorded no growth in the second quarter of 2015, following an upwardly revised of 0.7 percent expansion reported in the January to March quarter and matching preliminary estimates. A rebound in net exports were unable to offset a decline in investment and a slowdown in household spending.

In the second quarter, households final consumption expenditure decelerated sharply (0.0 percent after +0.9 percent in the previous quarter). Government expenditure grew by 0.4 percent, the same rate as in the March quarter. Total gross fixed capital formation decreased by 0.2 percent, after remaining flat in the preceding quarter. Non-financial corporations' gross fixed capital formation expanded by 0.3 percent, slowing from a 0.6 percent increase in the preceding quarter. Final domestic demand (excluding changes in inventories) contributed +0.1 points to GDP growth (after +0.6 points in January to March).

Exports expanded by 2.0 percent, accelerating from a1.5 percent expansion in the previous quarter. Imports grew by 0.5 percent, slowing from a 2.1 percent growth in the first quarter. That brought the foreign trade balance contributed positively to the economy (+0.4 points after –0.2 points). In contrast, changes in inventories contributed negatively to GDP growth (–0.5 points after +0.3 points in Q1).

Year-on-year, the French economy advanced by 1.1 percent, accelerating from an upwardly revised 0.9 percent expansion in the previous quarter.

French GDP Stagnation Confirmed in Q2


Insee l Rida Husna | rida@tradingeconomics.com
9/23/2015 1:09:02 PM