French GDP Growth Revised Up in Q4

The French economy advanced 0.3 percent in the December quarter of 2015, the same pace as in the preceding quarter and slightly above preliminary estimates. An increase in government expenditure and investment and a rebound in exports offset a decline in household spending.

In the fourth quarter of 2015, households final consumption expenditure contracted 0.2 percent (after +0.5 percent in the September quarter). In contrast, government expenditure grew by 0.5 percent, following a 0.4 percent expansion in the previous quarter. Total gross fixed capital formation expanded 0.7 percent, after growing 0.1 percent in the third quarter. Non-financial corporations' gross fixed capital formation rose 1.3 percent, as compared to a 0.5 percent rise in the preceding quarter. Final domestic demand (excluding changes in inventories) contributed +0.2 points to GDP growth (after +0.4 points in the previous three months. 

Exports increased by 1.0 percent, reversing from a 0.6 percent fall in the third quarter. Imports grew by 2.5 percent, accelerating from a 1.7 percent growth in the third quarter. That brought the foreign trade balance contributed negatively to the economy (-0.5 points after -0.7 points in the September quarter). In contrast, changes in inventories contributed positivevely to GDP growth (+0.7 points after +0.7 points).

Year-on-year, the French economy advanced by 1.4 percent, as compared to a 1.1 percent expansion in the September quarter.

For full year of 2015, the economy expanded 1.1 percent, accelerating from a 0.2 percent growth in the preceding year.

French GDP Growth Revised Up in Q4

Insee l Rida Husna |
2/26/2016 9:14:52 AM