France: GDP growth swings to negative in Q3
December 24, 2013
GDP matched previously released estimates and contracted 0.1% over the previous quarter in Q3 according to revised data. The decline contrasted the 0.6% expansion tallied in Q2 and matched market expectations.
The deterioration in the third quarter was seen across the board. Private consumption expanded just 0.1% over the previous quarter (Q2: +0.4% quarter-on-quarter) and the pace of expansion in government spending decelerated from 0.7% in Q2 to 0.2% in Q3. Fixed investment decreased 0.4% in Q3, mirroring the fall tallied in Q2.
The external sector's net contribution to overall growth deteriorated from plus 0.1 percentage points in the second quarter to a contribution of minus 0.6 percentage points in the third quarter. Exports of goods and services contracted 1.3% in Q3 (Q2: +1.9% qoq), while imports rose 0.9% (Q2: +1.5% qoq).
FocusEconomics Consensus Forecast panelists see the economy growing 0.8% in 2014, which is down 0.1 percentage points from last month's forecast. For 2015, panelists expect economic growth to inch up to 1.3%.