According to preliminary data from INSEE, the French economy experienced slight growth in the first quarter of 2023, 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, as reported in the quarterly GDP report by INSEE.
The positive trend in the French economy is evident from the acceleration of household spending growth to 0.4% in the first quarter, up from 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had projected an average growth of 0.1% in the GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. The actual growth reported for the first quarter aligned with the Bank of France’s expectations announced in early April.
The data suggests that this gradual recovery may be a sign that France is moving towards economic stability after being impacted by COVID-19 pandemic. Analysts will continue to monitor economic indicators to assess the sustainability of this growth trajectory and its implications for future economic policies and developments in France.