French GDP Growth Stalls in Q1


The French economy showed no growth in the first three months of 2014, according to final figures from the INSEE and matching preliminary estimates. The GDP stagnated in the first quarter, following a 0.2 percent expansion in the previous period. A contraction was avoided due to government spending and higher inventories.

On a quarter-on-quarter seasonally adjusted basis, households’ consumption expenditure declined (-0.5 percent after +0.2 percent) and the decrease of total gross fixed capital formation got sharper (-0.8 percent after -0.2 percent). All in all, final domestic demand (excluding changes in inventories) decreased anew and contributed negatively to GDP in Q1 (-0.4 points after +0.2 points in Q4 of 2013).

Government expenditure increased 0.4 percent, slightly down from a 0.5 percent increase in the Q4 of 2013.

Imports accelerated (+1.0 percent after +0.5 percent), while exports slowed (+0.6 percent after +1.5 percent). Consequently, the foreign trade balance contributed negatively to activity (-0.1 points after +0.3 points). In contrast, changes in inventories contributed positively (+0.5 points after -0.3 points).

Year-on-year, the GDP grew 0.7 percent in the first quarter of 2014, following a 0.8 percent increase in the previous period.

French GDP Growth Stalls in Q1


INSEE | Isabel Felino | Isabel.felino@tradingeconomics.com
6/27/2014 9:28:03 AM