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France GDP growth confirmed at 0.6% QoQ in Q1

Staff writer ▼ | June 24, 2016
France economy advanced 0.6 percent in the first three months of 2016, following an upwardly revised 0.4 percent expansion in the December quarter 2015 and matching preliminary estimates.
France GDP
French economy   An upwardly revised 0.4 percent expansion
It was the strongest growth since the March quarter 2015, as household spending and investment increased at a faster pace while government expenditure remained strong.

In the first quarter, households final consumption expenditure rose 1.1 percent (after +0.1 percent in the preceding quarter).

Government expenditure rose 0.5 percent, the same pace as in the previous three months. Total gross fixed capital formation increased by 1.4 percent, accelerating from a 1.0 percent expansion in the preceding quarter.

Non-financial corporations' investment rose 2.1 percent, as compared to a 1.6 percent rise in the fourth quarter 2015. Final domestic demand excluding inventory changes contributed for +1.0 points to GDP growth (after +0.4 points in the December quarter).

Exports remained unchanged (from +0.8 percent rise), while imports rose 0.8 percent (from +2.8 percent).

That brought the foreign trade balance contributed negatively to the economy (-0.2 points after -0.6 points in the December quarter). Changes in inventories also contributed negatively to GDP growth (-0.2 points after +0.6 points).

Year-on-year, the economy expanded 1.3 percent, compared to a 1.4 percent expansion in the December quarter and in line with expectations.