French GDP Stagnates in Q2


The French economy recorded no growth in the second quarter of 2015, following a revised 0.7 percent expansion in January to March period and missing market consensus. A rebound in net exports were unable to offset a decline in investment and a slowdown in household and government spending.

According to a preliminary report, households’ consumption expenditure decelerated sharply (+0.1 percent after +0.9 percent in the previous quarter). Government expenditure expanded by 0.3 percent, slowing from a 0.5 percent growth in the preceding quarter. In contrast, total gross fixed capital formation declined by 0.3 percent, after remaining flat in the March quarter. Final domestic demand (excluding changes in inventories) decelerated strongly, contributing +0.1 points to GDP growth (after +0.6 points in Q1 2015).

Exports expanded by 1.7 percent, accelerating from from a 1.3 percent expansion in the previous quarter. Imports grew 0.6 percent, slowing from a 2.2 percent growth in the first quarter of 2015. The foreign trade balance contributed positively to the economy (+0.3 points after -0.3 points in the previous quarter). In contrast, changes in inventories contributed negatively: -0.4 points after +0.3 points in the March quarter.

Year-on-year, the GDP grew 1.0 percent in the second quarter, accelerating from a 0.8 percent expansion in the previous period.

French GDP Stagnates in Q2


Insee l Rida Husna l rida@tradingeconomics.com
8/14/2015 6:58:37 AM