The French economy grew slightly in the first quarter, according to preliminary data from the INSEE statistics agency. This was a bit above analysts’ expectations, with the euro zone’s second-biggest economy seeing a 0.2% increase in the first three months of the current year, following a 0.1% growth in the fourth quarter of 2023.
Household spending growth for the quarter accelerated to 0.4%, compared to 0.2% in the previous quarter, indicating a boost in consumer confidence and economic activity. 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%. The reported growth for the quarter aligned with the Bank of France’s expectation announced in early April, further strengthening this positive trend in the French economy.
Economic experts had earlier predicted a slight increase in growth for the first quarter, which is now confirmed by these latest data from INSEE. This news sets a promising tone for future economic performance in France and suggests that consumer confidence and economic activity are on an upward trajectory, which could bode well for businesses and individuals alike as they plan their financial futures.