France’s gross domestic product (GDP) in the third quarter (Q3) of 2023 increased modestly by 0.1 percent in volume terms, after a 0.6 percent increase in the previous quarter, the French National Institute of Statistics and Economic Studies (INSEE) said on Tuesday.
In its preliminary report, INSEE noted that France’s final domestic demand accelerated and contributed positively to GDP growth in Q3 by 0.7 points. This followed a 0.2 point increase in Q2 of 2023.
The increase was « due to the combined rise in household consumption and gross fixed capital formation, » INSEE said.
However, foreign trade shrank in Q3 of 2023, with both exports and imports dropping. This resulted in a negative contribution to GDP growth in Q3.
The French statistics authority has maintained its annual GDP growth forecast at 0.9 percent for the whole year of 2023.
However, INSEE’s forecast is still lower than the 1 percent annual growth target announced in July by France’s Economy Minister Bruno Le Maire.
