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France GDP growth revised up to 0.6% QoQ in Q1

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Staff writer ▼ | June 1, 2016
The French economy expanded by 0.6 percent quarter-on-quarter in the March quarter of 2016, higher than preliminary figure of a 0.5 percent growth, second estimate showed.
French economy
French economy   The strongest expansion since the March quarter 2015
It is the strongest expansion since the March quarter 2015, mainly supported by a faster increase in household spending and investment while government expenditure remained robust.

In the first quarter of 2016, households final consumption expenditure grew by 1.0 percent (after remaining unchanged in the December quarter). Government expenditure rose 0.4 percent, the same pace as in the previous three months. Total gross fixed capital formation increased by 1.6 percent, accelerating from a 1.2 percent expansion in the preceding quarter.

Non-financial corporations' investment rose 2.4 percent, as compared to a 1.9 percent rise in the fourth quarter 2015. Final domestic demand excluding inventory changes contributed for +1.0 points to GDP growth (after +0.3 points in the December quarter). While exports remained unchanged (from +0.8 percent rise), imports rose 0.6 percent (from +2.5 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 +0.7 points).

Year-on-year, the economy expanded 1.3 percent and in line with first estimate.