The French economy grew slightly in the first quarter, surpassing analysts’ expectations, according to preliminary data from the INSEE statistics agency. The euro zone’s second-largest economy expanded by 0.2% in the first three months of the current year, following a 0.1% growth in the fourth quarter of 2023.
Household spending growth also picked up in the first quarter, with a 0.4% increase compared to 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted an average growth of 0.1% in GDP for the first quarter, with estimates ranging from 0.0% to +0.2%. The growth seen in the quarter aligned with the Bank of France’s expectations that were announced in early April.
Overall, the French economy showed signs of modest growth in the first quarter of the year, with household spending playing a key role in driving this expansion. These figures indicate a positive start to the year for the economy, putting it on a steady path for further growth and development in the months ahead. Despite ongoing uncertainties and challenges in