French Economy Surpasses Expectations with 0.2% Growth in First Quarter of 2023, Led by Household Spending

According to new data from INSEE, the French economy grew slightly in the first quarter of 2023, surpassing analysts’ expectations. The euro zone’s second-largest economy saw an increase of 0.2% in the first three months of the year, following a growth of 0.1% in the fourth quarter of 2023, as reported in INSEE’s quarterly GDP report.

Household spending growth accelerated to 0.4% in the first quarter, compared to 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted an average growth of just 0.1% in GDP for the first quarter, with estimates ranging from -0.1% to +0.2%. Despite this, the data exceeded analysts’ expectations and was in line with the Bank of France’s forecast announced in early April.

Overall, the French economy showed a slight growth in the first quarter, with household spending playing a significant role in this increase. The data indicates positive momentum for the rest of the year as France continues to recover from the economic challenges posed by COVID-19 pandemic.