French GDP grows at 0.5% in Q1 2016
The French institute of statistics and economic studies Insee has released figures for French economy in Q1 2016.
Insee found out that French GDP rose by 0.5% after a 0.3% growth registered in Q4 2015.
Household consumption expenditure sustained the growth, having increased by 1.2% during the first quarter of 2016 against -0.1% at end 2015.
“This rise was the most significant since the end of 2004. It was mainly driven by the strong rebound in expenditure on goods (+1.7% after -0.5%) and, to a lesser extent, by the acceleration in consumption of services (+0.6% after +0.2%),” Insee underlined.
Also the institute stressed a rise in the production of goods and services (+0.6% like in Q4 2015) while the manufacturing industry’s output slowed down in most branches (+0.3% in Q1 2016 against +0.9% in Q4 2015).
However, the energy sector and markets services have seen their production sharply increasing.
Total gross fixed capital formation (GFCF) kept rising (+0.9% after +0.7%).
Foreign trade balance continued to weigh on French GDP growth by 0.2 points in Q1 2016.
“In Q1 2016, imports slowed down strongly (+0.5% after +2.1%), particularly in hydrocarbons. Exports slipped back slightly (-0.2% after +1.0%), mainly because of transport equipment,” Insee found out.