In the first quarter of 2023, preliminary data from INSEE showed that the French economy grew slightly, 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.
According to INSEE’s quarterly GDP report, household spending growth for the quarter accelerated to 0.4%, up from 0.2% in the fourth quarter of 2023. This was in line with Reuters poll of 29 economists which had predicted a growth rate of +0.1%, with estimates ranging from -0.1% to +0.3%. The Bank of France had also forecasted this growth trend in early April.
The positive growth in the French economy is an encouraging sign and suggests some resilience in the face of economic challenges. It will be important to monitor future data releases to assess the sustainability of this growth trend and its implications for the broader euro zone economy.