Paris, July 30 – The French economy continued to grow at the same pace in the second quarter as in the first three months of the year, but the growth exceeded expectations. This was revealed by preliminary data released on Tuesday by the French statistical office INSEE.
The agency stated that France’s gross domestic product (GDP) grew by 0.3% quarter-on-quarter in the second quarter. This is the same growth rate as in the first quarter, for which INSEE revised the data upwards, but 0.1 percentage points more than the market expected. The market expected growth of 0.2%, based on the original data for the first quarter, which showed economic growth of 0.2%.
Foreign demand and government spending significantly contributed to the development of the French economy. Although the growth rate of exports slowed slightly, exports continued to grow, while imports stagnated. French exports grew by 0.6% in the second quarter compared to the first quarter,after a 0.7% growth in the first quarter. Imports, on the other hand, showed zero growth after a 0.3% decline in the first three months of the year.
Moreover, government spending continued to grow, albeit at a slower pace. In the first quarter, it grew by 0.6%, in the second quarter by 0.3%.
Year-on-year, the French economy grew by 1.1% in the period from April to the end of June. In the first quarter, after upward revision, it grew by 1.5%. Statisticians originally reported growth for the first quarter at 1.1%.
Table: Key data on the growth of the French economy
| Indicator | 2nd quarter 2023 | Change compared to the 1st quarter |
|---|---|---|
| Gross Domestic Product (GDP) | +0.3% | +0.1% |
| Exports | +0.6% | +0.1% |
| Imports | 0% | -0.3% |
| Government spending | +0.3% | -0.3% |
