The French economy experienced slight growth in the first quarter, surpassing analysts’ expectations. Preliminary data from INSEE statistics agency revealed that the euro zone’s second-largest economy rose by 0.2% in the first three months of the year, following a 0.1% growth in the previous quarter of 2023, as reported in the quarterly GDP report by INSEE.
Household spending growth also accelerated in the first quarter, rising to 0.4% from 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted an average growth of just 0.1% for GDP for the first quarter, with estimates ranging from -0.1% to +0.1%. This growth in the first quarter aligns with the Bank of France’s expectations, which were announced in early April.
Despite ongoing challenges and uncertainties in the global economic landscape, this positive growth trajectory is a promising sign for France’s economy as it moves forward into Q2 and beyond.
