French Economy Contracts in Q3

In the third quarter of 2013, French GDP contracted 0.1 percent quarter-on-quarter, unchanged from a preliminary estimate released earlier in November. GDP growth in Q2 is slightly scaled up from +0.5 percent to +0.6 percent. The annual growth rate carried over at Q3 point remains unchanged at 0.1 percent.

Household consumption expenditure decelerated (+0.1 percent after +0.4 percent). Furthermore, total gross fixed capital formation decreased by 0.4 percent, as in the previous quarter. Overall, final domestic demand (excluding inventory changes) marked time and had a neutral contribution to GDP after +0.4 point in Q2.

Exports fell again (–1.3 percent after +1.9 percent) whereas imports remained dynamic (+0.9 percent after +1.5 percent). Hence, the foreign trade balance had a negative accounting contribution to GDP growth: –0.6 point, after +0.1 point the previous quarter.

Conversely, changes in inventories contributed for +0.5 point to GDP growth (after +0.1 point).

French Economy Contracts in Q3

INSEE | Joana Taborda |
12/24/2013 8:26:28 AM