French economy expands moderately in first quarter

Paris, April 28, (dpa-AFX/GNA) – France’s economy expanded moderately in the first quarter on robust foreign demand, the first estimate released by the statistical office Insee showed on Friday.

Gross domestic product (GDP) expanded 0.2% from the preceding quarter. The growth rate matched economists’ expectations and followed a nil growth in the fourth quarter of 2022.

The expenditure-side breakdown showed that household consumption remained flat after falling 1% a quarter ago. Further, gross fixed capital formation declined 0.2% after stability in the prior period.

Government spending slid 0.1%, in contrast to the 0.5% rise in the fourth quarter.

Another piece data from the statistical office showed that household spending declined at a faster pace in March due to the fall in food consumption and the decline in purchases of manufactured goods.

Household spending decreased 1.3% month-on-month in March after a 0.8% decline in February. Food consumption fell 2.4% and purchases of engineered goods dropped 1.2%. Meanwhile, energy consumption gained 0.3%. For the first quarter a whole, household consumption slid 0.2% from the previous three months.

The International Monetary Fund projected France’s GDP to grow 0.7% this year and 1.3% in 2024. Eurozone first quarter GDP data is due later Friday. The overall currency bloc is also forecast to grow 0.2% after staying flat a quarter ago.

GNA