French economy shows no growth in Q4 2023

The final domestic demand, excluding inventories, had a negative impact on the GDP growth for this quarter, contributing negatively by 0.1 points following a modest gain of 0.4 points in Q3 2023. This downturn was primarily due to a significant decrease in gross fixed capital formation (GFCF), which fell by 0.7 per cent after a slight increase of 0.2 per cent in the preceding quarter.

Foreign trade recovered in Q4 2023 positively contributed 1.2 points to GDP growth, a notable improvement from the 0.1 points in the previous quarter. This positive development was driven by a sharp decline in imports by 3.1 per cent, contrasted with a relatively stable export level, which saw a marginal increase of 0.1 per cent after a 0.6 per cent rise in Q3, as per INSEE.

The contribution of inventory changes to GDP growth remained negative, marking a 1.1 points deduction after a 0.3 points deduction in Q3 2023.

France's economy saw an annual increase of 0.9 per cent in 2023, a significant slowdown from the 2.5 per cent growth in 2022 and the 6.4 per cent surge in 2021. This yearly growth was predominantly buoyed by a sharp increase in the Q2 2023, while economic activity remained mostly unchanged throughout the remaining year. As 2023 drew to a close, the growth overhang for 2024 was pegged at a modest 0.1 per cent.

ALCHEMPro News Desk (DP)