The French economy grew slightly in the first quarter, beating analysts’ expectations. Preliminary data from INSEE showed that the euro zone’s second-biggest economy saw a 0.2% growth in the first three months of the current year, following a 0.1% growth in the fourth quarter of 2023.
Household spending growth also accelerated, rising to 0.4% in the first quarter 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 gross domestic product (GDP) for the first quarter, with estimates ranging from -0.1% to +0.3%. The positive growth observed in the first quarter is a promising sign and aligns with the Bank of France’s expectations announced in early April.
The global economic landscape poses challenges to the French economy, and analysts will continue to monitor economic indicators to assess its overall health and resilience in the coming months.
