French Economy Contracts 0.1% In Third Quarter; Household Consumption Expenditure On Goods Up By 1.4%

  on December 24 2013 3:35 AM
France_inflation
File photo of a shopper buying vegetables on a market in Nice southern France. Reuters

The final estimate of France’s gross domestic product, or GDP, in the third quarter remained unchanged at the previous estimation of a contraction of 0.1 percent, indicating that the euro zone's second-largest economy is struggling to sustain the rebound it witnessed in the second quarter with a growth of 0.6 percent.

The third-quarter GDP growth was in line with analysts’ estimates. According to data released on Tuesday by the National Institute of Statistics and Economic Studies, the deficit in foreign-trade balance contributed (-0.6 points) to the contraction in the third quarter, compared to the positive (0.1 percent) contribution made in the preceding quarter.

The French economy contracted at 0.2 percent and by 0.1 percent in the last quarter of 2012 and in the first quarter of 2013, respectively, before bouncing back to growth in the second quarter of the year.

French household consumption expenditure on goods increased by 1.4 percent in November after decreasing by 0.1 percent in October, topping expectations for a 0.4 percent increase in the spending. 

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