Posted Oct 28, 2022, 8:05 AMUpdated on Oct 28, 2022 at 9:51 am
Growth is struggling in France. GDP rose by a modest 0.2% in the third quarter after increasing by 0.5% in the previous three months, according to data published this Friday morning by INSEE.
Although this figure was expected, it nevertheless marks a marked slowdown in the tricolor economy. “The growth overhang for 2022 is 2.5%,” said INSEE chief economist Julien Pouget in a tweet. In its latest economic report, the statistical institute expects zero growth in the last quarter, expecting a 2.6% increase in GDP for this year, ie 0.1 point less than the government forecast.
Sluggish consumption, dynamic investment
While inflation continues to race ahead, even exceeding 6.2% in October, household consumption, the main driver of GDP growth in France, was completely sluggish (+0% ).
At half mast since the start of the year, purchases of goods recorded a further decline of 0.5%, in volume, this summer. This, despite a rather encouraging month of September when spending increased by 1.2%, driven by spending on energy and capital goods. On the other hand, the surge in prices led households to reduce their food expenditure (-0.7%).
The pleasant surprise nonetheless comes from investment, which continued to accelerate, up 1.3% driven by the manufacturing sector.
On the other hand, foreign trade contributed negatively to growth: hit by the global slowdown, exports suffered the blow for the third consecutive quarter, up by only 0.7%, while imports remained sustained (+1, 9%) driven by purchases of electricity and capital goods.
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