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France posted 0.1% growth in the fourth quarter as the energy crisis eased

PARIS, 31 january (Reuters) – Preliminary gross domestic product (GDP) figures released on Tuesday showed that France In the last quarter of 2022, a decline in energy imports and firm business investment will offset the decline in consumer spending. compensation because of what he did, he was able to ensure a slight increase.

INSEE national The eurozone’s second-largest economy grew 0.1% in the period, up from 0.2% in the third quarter, the statistics agency said.

Nevertheless, preliminary figures for the fourth quarter beat forecasts. A Reuters poll of economists’ expectations had forecast a 0.0% figure for the quarter.

France’s fourth-quarter GDP figures also provided a positive contrast to Germany after data on Monday showed the euro zone’s largest economy unexpectedly shrank in the fourth quarter.

For 2022 as a whole France economy grew by 2.6%, roughly in line with government expectations.

of Capital Economics Europe Andrew Kenningham, Chief Economist, “On paper France many others to energy and monetary policy shocks Europe should endure better than their economies,” he said.

“However, the weakness of domestic demand at the end of last year indicates that recession is likely, although it is not certain,” he added.

As in other major economies, France will import high energy until most of 2022 prices had to contend with, so at the end of the year gas and electricity falling prices provided much-needed relief.

INSEE said foreign trade added 0.5 percentage points to GDP in the last quarter of 2022, as lower energy prices In 2010, exports decreased by only 0.3 percentage points against 1.9 percent for imports.

That helped weak domestic demand and companies cut inventories, which subtracted 0.2 percentage points from GDP.

Record inflation Consumer spending fell 0.9% from the previous three months, weighing on aggregate domestic demand as household purchasing power weakened.

Meanwhile, business investment rose 0.8%, marking a sharp slowdown from the 2.3% INSEE recorded in the previous three months.

Reporting by Sudip Kar-Gupta and Leigh Thomas; Edited by Benoit Van Overstraeten and Andrew Heavens

Our standards: Thomson Reuters Trust Principles.

2023-01-31 19:04:46
Source – reuters

Translation“24 HOURS”



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