French Economy Defies Expectations with Slight Growth in First Quarter of 2023

The French economy experienced slight growth in the first quarter of 2023, slightly above analysts’ expectations. According to preliminary data from INSEE statistics agency, the euro zone’s second biggest economy rose by 0.2% in the first three months of the year, following a 0.1% growth in the previous quarter.

Household spending growth also saw an acceleration in the first quarter, rising to 0.4% from 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted, on average, a 0.1% growth in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. This growth aligns with the Bank of France’s expectations, which were announced in early April.

Overall, the French economy’s performance in the first quarter was encouraging and shows that it is navigating ongoing challenges and uncertainties in the global economic landscape with optimism.