France GDP Growth Strongest In 3 Quarters In Q4


France GDP expanded 0.4 percent quarter-on-quarter in the December quarter of 2016, compared to a 0.2 percent growth in the three months to September and in line with market expectations, first estimate showed. It was the strongest expansion since the March quarter, as final domestic demand excluding inventory changes gathered momentum while foreign trade balance contributed slightly to GDP growth.

In the fourth quarter, household consumption rose 0.6 percent, following a 0.1 percent rise in the previous two quarters. Government expenditure rose 0.4 percent, compared to a 0.3 percent increase in the preceding quarter. Total gross fixed capital formation grew by 0.8 percent, much faster than a 0.3 percent growth in the September quarter. Final domestic demand (excluding changes in inventories) contributed 0.6 points to GDP growth, up significantly from 0.2 points in the prior quarter.

Exports increased by 1.1 percent, faster than a 0.5 percent rise in the third quarter. Imports also went up 0.8 percent, slowing sharply from a 2.5 percent increase in the preceding quarter. The foreign trade balance contributed positively to the economy (0.1 points after -0.7 points in the third quarter). In contrast, changes in inventories contributed negatively: -0.2 points after +0.7 points in the September quarter.

Year-on-year, the GDP grew by 1.1 percent, faster slightly than a 1.0 percent expansion in the third quarter.

France GDP Growth Strongest In 3 Quarters In Q4


Insee l Rida Husna | rida@tradingeconomics.com
1/31/2017 7:21:16 AM