French GDP Growth Rate Confirmed at 0.5% in Q2


In Q2 of 2013, French GDP in volume terms rose by 0.5 percent after an upward revised 0.1 percent fall in the previous quarter. It is the fastest increase since Q1 of 2011, mainly driven by private consumption.

Households’ consumption expenditure accelerated (+0.4 percent after -0.1 percent). Total gross fixed capital formation decreased again though less sharply than in Q1 (-0.4 percent after -1.0 percent). All in all, final domestic demand (excluding changes in inventories) contributed mainly to GDP acceleration: +0.3 percentage points after -0.2 percentage points. 

Exports rebounded strongly (+2.0 percent after -0.5 percent). Due to the acceleration of the total demand, imports also accelerated (+1.7 percent after +0.1 percent), so that foreign trade balance had a neutral accounting contribution to GDP growth this quarter (after -0.2 percentage points). Finally, changes in inventories contributed positively to the activity: +0.2 percentage points in Q2, as much as in Q1.

Due to the rebound of the activity in Spring, non-financial corporations’ nominal value added increased more rapidly than in the beginning of the year (+1.2 percent after +0.4 percent). Wages accelerated (+0.6 percent after +0.4 percent): employment decreased at a slower pace (-0.1 percent after -0.2 percent) and the average wage per capita was more dynamic (+0.7 percent after +0.5 percent). 

French GDP Growth Rate Confirmed at 0.5% in Q2


INSEE | Nuno Fontes | nuno@tradingeconomics.com
9/27/2013 9:17:39 AM