The French economy has shown positive signs of growth in the first quarter, according to preliminary data from the INSEE statistics agency. Despite analysts expecting a slight expansion of 0.1%, the second-largest economy in the euro zone grew by 0.2% in the first three months of 2023, as reported in the quarterly GDP report by INSEE.
Household spending growth accelerated to 0.4% in the first quarter, up from 0.2% in the fourth quarter of 2023, beating expectations of an average growth of just 0.1% among economists polled by Reuters. This increase could be attributed to increased consumer confidence and spending on goods and services as restrictions on social activities were lifted.
The Bank of France had expected slightly lower growth for this period, but was pleased with the actual results which aligned with their projections announced early April. This positive trend suggests that France is gradually recovering from the impact of COVID-19 pandemic and could have implications for future economic policies and developments in France.
Analysts will closely monitor economic indicators such as employment rates, inflation, and consumer confidence to assess the sustainability of this growth trajectory moving forward.