The French economy exceeds expectations, recording a growth of 0.5% in Q2

The French economy grew by 0.5% in the second quarter of this year, exceeding expectations, driven by exports while household consumption declined, according to the National Institute of Statistics and Economic Studies.

This first estimate of the Institute came higher than the estimated growth forecast of 0.1% for the period between April and June and after 0.1% recorded in the first quarter of 2023.

This improvement is based on the steady performance of exports, particularly transport equipment, while the rise in imports is less strong. Foreign trade contributed positively to the quarterly growth.

Growth also benefited from the dynamism of industries, the commercial services sector and energy production, supported by the reopening of nuclear plants.

On the other hand, household consumption decreased by 0.4 percent in the second quarter, with a noticeable decline of 2.7 percent in terms of food consumption for the sixth quarter in a row, affected by inflation of more than 10 percent.

In a separate publication, the institute indicated a significant increase of 2.5 percent in food consumption during the month of June.

The institute reduced the growth rate in the last quarter of 2022 by 0.1 points, to 0.1 percent, without affecting the 2.5 percent increase in GDP recorded last year as a whole.