France: GDP expands modestly in Q3
December 23, 2015
More complete data released by the statistical office (INSEE) show that in the third quarter of 2015 the French economy grew a modest 0.3% over the previous quarter in seasonally-adjusted terms, which came in above the flat growth seen in Q2. The reading matched market expectations. Year-on-year, GDP grew steadily at Q2’s 1.1% in Q3.
The third quarter’s acceleration was mainly the result of stronger domestic demand, which more than offset a negative contribution of the external sector. Private consumption in Q3 grew 0.3% over the previous quarter, which was above the flat growth recorded in Q2. Government spending increased 0.4% in Q3, which was a tad above the 0.3% expansion recorded in Q2. Meanwhile, gross fixed investment recorded zero growth in Q3 (Q2: -0.1% quarter-on-quarter).
On a negative note, the external sector swung to a negative contribution as exports of goods and services fell 0.6% over the previous quarter in Q3 (Q2: +2.0% qoq), while imports increased 1.8% (Q2: +0.7% qoq). As a result, the external sector’s net contribution to overall economic growth swung from plus 0.4 percentage points in Q2 to minus 0.7 percentage points in Q3.
Author: Eric Denis , Economist