According to preliminary data from the INSEE statistics agency, the French economy grew slightly in the first quarter, 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.
Household spending growth for the quarter accelerated to 0.4%, up from 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had, on average, predicted a 0.1% growth in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. The growth reported for the quarter was in line with the Bank of France’s forecast announced in early April.
The positive growth in the French economy indicates a modest recovery 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. Despite ongoing challenges such as high unemployment and social unrest, France has shown signs of resilience and adaptability, which is a positive sign for both domestic and international investors