by A number of one-off factors hurt growth dynamics, but there are many reasons to think that expansion will pick up in the rest of this year.France is the first country in the euro area to publish Q2 GDP figures. The economy expanded by 0.2% q-o-q in Q2, the same pace as the previous quarter and below consensus expectations of 0.3%.The key source of disappointment was private consumption, which was hit by one-off factors such as unseasonal weather and transport strikes. More positively, investment accelerated sharply, thanks largely to a surge in corporate investment.Carryover effects mean that even with zero growth in the remaining two quarters of 2018, French GDP would grow by 1.3% on average this year. Given the recent stabilisation in business surveys, the end of rail transport strikes
Topics:
Nadia Gharbi considers the following as important: French economy, french gdp growth, French Q2 GDP growth, Macroview
This could be interesting, too:
Cesar Perez Ruiz writes Weekly View – Big Splits
Cesar Perez Ruiz writes Weekly View – Central Bank Halloween
Cesar Perez Ruiz writes Weekly View – Widening bottlenecks
Cesar Perez Ruiz writes Weekly View – Debt ceiling deadline postponed
A number of one-off factors hurt growth dynamics, but there are many reasons to think that expansion will pick up in the rest of this year.
France is the first country in the euro area to publish Q2 GDP figures. The economy expanded by 0.2% q-o-q in Q2, the same pace as the previous quarter and below consensus expectations of 0.3%.
The key source of disappointment was private consumption, which was hit by one-off factors such as unseasonal weather and transport strikes. More positively, investment accelerated sharply, thanks largely to a surge in corporate investment.
Carryover effects mean that even with zero growth in the remaining two quarters of 2018, French GDP would grow by 1.3% on average this year. Given the recent stabilisation in business surveys, the end of rail transport strikes and the World Cup win, real GDP growth will likely pick up in Q3. Overall, we remain confident about the growth outlook for France, although risks are skewed to the downside. We expect French GDP to grow 1.6% in 2018 as a whole.
