Slight GDP Growth Exceeds Expectations in French Economy’s Slow Return to Stability

The French economy grew slightly in the first quarter, exceeding analysts’ expectations. Preliminary data from the INSEE statistics agency showed that the country’s GDP expanded by 0.2% in the first three months of the year, following a 0.1% growth in the previous quarter of 2023.

Household spending growth for the quarter accelerated to 0.4%, up from 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had, on average, predicted a 0.1% growth in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. This positive growth trend was in line with the Bank of France’s forecast announced in early April and suggests some resilience in the face of economic challenges.

This modest recovery is an encouraging sign and will be important to monitor future data releases to assess its sustainability and implications for the broader euro zone economy. The French economy has faced significant challenges in recent years, including high levels of unemployment and debt, but this slight growth indicates that there may be some hope for a brighter future ahead.