French Economy Defies Expectations with 0.2% GDP Growth in Q1

The French economy experienced slight growth in the first quarter, surpassing analysts’ expectations. The euro zone’s second-largest economy expanded by 0.2% in the first three months of the year, following a 0.1% growth in the previous quarter of 2023, as reported in the quarterly GDP report by INSEE.

Household spending growth accelerated to 0.4% in the first quarter, up from 0.2% in the fourth quarter of 2023. This was better than expected, with a Reuters poll of 29 economists projecting an average growth of only 0.1% for the GDP in the first quarter, with estimates ranging from -0.1% to -0%.

Despite this positive trend, analysts will continue to monitor economic indicators to assess the sustainability of this growth trajectory and its potential implications for future economic policies and developments in France.