France Surprises with Modest Growth in Q1 2023: Economists’ Expectations Exceeded and Consumer Confidence Boosts

In the first quarter of 2023, the French economy showed a slight increase in growth, which was slightly above analysts’ expectations. The euro zone’s second-biggest economy saw a 0.2% increase in the first three months of the current year, following a 0.1% growth in the fourth quarter of 2023, according to INSEE’s quarterly GDP report.

Household spending growth for the quarter accelerated to 0.4%, compared to 0.2% in the previous quarter. A Reuters poll of 29 economists had forecasted an average growth of 0.1% in gross domestic product (GDP) for the first quarter, with estimates ranging from 0.0% to +0.2%. The reported growth for the quarter aligned with the Bank of France’s expectation announced in early April.

The positive trend in the French economy is reflected in this slight increase in growth for the first quarter. The acceleration in household spending suggests a boost in consumer confidence and economic activity, which sets a promising tone for future economic performance in France. This news comes as earlier predictions by economic experts and indicates that France is on track for a stable and positive economic outlook moving forward into Q2 and beyond