France: Economy rebounds in Q3
November 15, 2012
In the third quarter, GDP rose 0.2% over the previous quarter, according to a preliminary estimate released on 15 November. The reading contrasted the revised 0.1% contraction seen in Q2 (previously reported: 0.0% quarter-on-quarter), and exceeded market expectations of zero growth. The third quarter reading reflected an improvement in the domestic sector, which was buttressed by stronger private consumption and a positive contribution from the external sector. Private consumption added 0.3% over the previous period (Q2: -0.2% qoq) while government consumption expanded a stronger 0.4% (Q2: +0.4% qoq). Meanwhile, gross fixed investment contracted 0.2%, which contrasted the 0.5% expansion seen in Q2. Furthermore, changes in inventories detracted 0.3 percentage points to overall economic growth. Meanwhile, the net contribution from the external sector to overall growth improved from a 0.4 percentage-point detraction in the second quarter to a 0.3 percentage-point contribution in the third, as exports outpaced imports. Exports of goods and services rose 0.5% in Q3 (Q2: +0.3% qoq), while imports contracted 0.6% (Q2: +1.6% qoq).