France’s GDP increased by 0.3% in the second quarter, a higher growth rate than anticipated

Traditional pillar of growth, household consumption has slightly rebounded (+0.1%) after a decline of 0.3% in the first quarter.

The economic growth of France is more important than expected, even if it remains minimal. In the second quarter, the gross domestic product (GDP) experienced a moderate increase of 0.3%, the National Institute of Statistics (INSEE) announced on Wednesday July 30 in its first estimate for the period from April to June. In a very uncertain national and international context, the organization anticipated growth of 0.2% rather after +0.1% in the first quarter.

The stocks, which represent the goods produced but not yet sold at the end of a given period, drew growth with a positive contribution of 0.5 points, after +0.7 point in the first quarter, detailed INSEE. Here, these stocks are made up of aeronautical and automotive equipment. However, excluding stocks, the final domestic demand stagnated.

A traditional pillar of growth, household consumption has slightly rebounded, 0.1% after a decline of 0.3% in the first quarter, driven by increased consumption of food products. “This recovery can be explained in particular due to the positioning of the Easter holidays at the end of April and a favorable weather in April and May”, explained INSEE.

Households have also consumed more services, while mild temperatures, however, weighed on energy consumption, which fell 2.4% (after +0.8%). In April and June, investments sunk in the red (-0.3% after -0.1%), penalized in particular by construction.

In an environment marked by the trade war launched by the United States in April, the contribution of foreign trade to growth has remained negative, -0.2 points after -0.5 points, the slight rebound in exports having been counterbalanced by an acceleration of imports.