According to initial data from France's statistical bureau INSEE, the country's economic growth doubled in the first quarter fueled by domestic demand. The gross domestic product (GDP) had a quarterly increase of 0.2 percent after a 0.1 percent increase in the previous quarter, surpassing predictions of another 0.1 percent increase.
A closer analysis of the figures indicates that the major contributor to the GDP growth was increased domestic demand. Boosted by a rise in food and energy consumption, household spending amplified to 0.4 percent from the 0.2 percent recorded in the previous quarter.
Furthermore, the gross fixed capital formation saw an improvement of 0.3 percent, which significantly contrasts the 0.9 percent slump established a quarter before.
On the downside, foreign trade's contribution to GDP growth dropped to zero in the first quarter from its former 1.0 aspect. Imports witnessed a 0.2 percent rise following a 2.3 percent decrease, while export rates grew by 0.5 percent, a slight acceleration from the previous quarter's growth rate of 0.4 percent.
Lastly, the influence of inventory changes on GDP growth remained negative, registering at 0.2 points compared to 0.9 points in the preceding period.
In an isolated report, the statistical bureau reported a monthly increase in household consumption of 0.4 percent in March, a notable rise from 0.1 percent in February. This increase can be attributed to the 0.8 percent growth in engineering goods consumption and a 0.5 percent surge in expenditure on food products.
