Investment in France

France - Investment
GDP growth flatlines in Q1
According to a preliminary estimate, economic growth flatlined on a seasonally-adjusted quarter-on-quarter basis in the first quarter, moderating from the 0.8% expansion seen in the fourth quarter of last year. Q1's reading marked the slowest result since Q4 2020. Meanwhile, on an annual basis, economic growth moderated to 5.3% in Q1, from the previous quarter's 5.5% expansion.
The quarterly moderation was broad-based, with private consumption, public spending, fixed investment and exports all weakening. Private consumption contracted 1.2% in Q1, marking the worst result since Q4 2020 (Q4 2021: +0.6% s.a. qoq). Government spending flatlined (Q4 2021: +0.4% s.a. qoq). Meanwhile, fixed investment growth edged down to 0.2% in Q1, from 0.3% in the previous quarter.
On the external front, exports of goods and services growth waned to 1.5% in Q1 (Q4 2021: +3.5% s.a. qoq). In addition, imports of goods and services growth slowed to 1.1% in Q1 (Q4 2021: +3.2% s.a. qoq).
Commenting on the outlook, Charlotte de Montpellier, economist at ING, commented:
“For the coming quarters, the growth outlook is not very bright. The sharp rise in inflation, which is now spreading more and more widely throughout the economy, is weighing on household incomes. […] We expect a weak growth situation for the next few quarters, with a second quarter probably close to 0.0% quarter-on-quarter and the second part of the year showing quarterly growth rates of around 0.4%. Ultimately, the French economy is expected to grow by 2.7% for the year as a whole, a weak figure if we consider the carry-over effect of the strong end of 2021 (2.4%).”
FocusEconomics Consensus Forecast panelists see the economy expanding 3.9% in 2022, which is down 0.1 percentage points from last month’s forecast, and 2.2% in 2023.
France - Investment Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Investment (annual variation in %) | 0.9 | 2.5 | 5.0 | 3.2 | 4.3 |
France Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 0.08 | 0.46 % | Jan 01 |
Exchange Rate | 1.12 | 0.65 % | Dec 31 |
Sample Report
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Economic News
-
France: GDP growth flatlines in Q1
April 29, 2022
According to a preliminary estimate, economic growth flatlined on a seasonally-adjusted quarter-on-quarter basis in the first quarter, moderating from the 0.8% expansion seen in the fourth quarter of last year.
-
France: Composite PMI rises to highest level in over four years in April
April 22, 2022
The S&P Global Flash Purchasing Managers’ Index (PMI) rose to 57.5 in April from 56.3 in March, marking the highest reading since January 2018.
-
France: Business confidence inches up in April
April 21, 2022
Business confidence rose to 108.2 in April from 107.4 in the previous month.
-
France: Potential economic impact of upcoming elections
March 30, 2022
In less than two weeks, the French electorate will head to the polls, as citizens cast their votes in a presidential election that includes 12 candidates from across the political spectrum: from far-left communist Fabien Roussel to far-right nationalist Eric Zemmour.
-
France: Consumer confidence falls to an over one-year low
March 29, 2022
Consumer confidence slid to 91.0 in March from February's 98.0.