The French economy grew slightly in the first quarter, beating analysts’ expectations by a small margin. INSEE’s preliminary data showed that the country’s second-largest economy increased by 0.2% in the first three months of 2023, following a 0.1% growth in the fourth quarter of 2023.
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 0.1% in gross domestic product (GDP) for the first quarter, with estimates ranging from 0.0% to +0.2%. Despite this, the growth exceeded analysts’ expectations and was in line with the Bank of France’s forecast announced in early April.
Overall, household spending played a significant role in driving the slight growth recorded in the first quarter, indicating positive momentum for the rest of the year as France continues to recover from economic challenges posed by COVID-19 pandemic.
