France’s economy showed a slight increase in the first quarter, according to preliminary data from the INSEE statistics agency released on Tuesday. The euro zone’s second-largest economy saw a 0.2% increase in the first three months of the year, compared to a 0.1% growth in the previous quarter of 2023, as reported in its quarterly GDP report by INSEE.
Despite global economic uncertainties, this growth suggests a positive trend in the French economy. The Bank of France had expected this growth and it was also predicted by a Reuters poll of 29 economists who forecast an average growth of 0.1% in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%.
The data also shows an acceleration in household spending growth to 0.4%, up from 0.2% in the fourth quarter of 2023, which indicates some resilience in the French economy that will be closely monitored in the coming months. Policymakers and economists will review the INSEE report to gauge the overall economic health and potential future trends in France.
