French Economy Defies Expectations with 0.2% Growth in Q1

Preliminary data from INSEE statistics agency showed that the French economy grew slightly in the first quarter, beating analysts’ expectations. The euro zone’s second-largest economy expanded by 0.2% in the first three months of 2023, following a 0.1% growth in the fourth quarter of 2023, according to INSEE’s quarterly GDP report.

Household spending growth also picked up in the first quarter, with a 0.4% increase compared to 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted an average growth of 0.1% in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. The growth seen in the quarter aligned with the Bank of France’s expectations that were announced in early April.

Overall, these figures indicate a positive start to the year for the French economy and suggest that it is on a steady path for further growth and development in the months ahead. Despite ongoing uncertainties and challenges in the global economic landscape, this data suggests a stable and somewhat resilient economy that is capable of weathering these challenges and continuing to grow over time.