France’s real GDP grows by 0.4% in Q3

France’s real GDP growth accelerated moderately by 0.4 per cent in the third quarter from 0.2 per cent in the second quarter buoyed by the Paris Olympic Games, according to preliminary data from statistics agency INSEE.

An influx of tourists attending the Paris Olympic and Paralympic Games supported the country’s consumer spending growing 0.5 per cent in the third quarter compared to a flat performance in the second quarter.

Additionally, the contribution of foreign trade to growth remained slightly positive in the third quarter of +0.1 points compared to +0.2 points in the second quarter. Imports declined more sharply of -0.7 per cent compared to +0.1 per cent in the second quarter than exports of -0.5 per cent after +0.5 per cent in the second quarter.

Total production, including goods and services, also accelerated slightly in the third quarter, rising by 0.4 per cent from +0.3 per cent in the previous quarter. It was boosted by Paris’ organisation of the Olympic and Paralympic Games during the summer and whose ticket sales and broadcasting rights are recorded, in national accounts, during time of the sporting event.

Production in energy, water, and waste remained strong of +2.1 per cent following the rebound recorded in the previous quarter of +1,7 per cent.

Conversely, production in the manufacturing industry dropped slightly in the third quarter of -0.1 per cent from -0.3 per cent in the second quarter, penalised in particular by the downturn in refinery output of -0.8 per cent compared to +3.4 per cent.

Attribution: INSEE