French GDP growth slows, inflation eases

A view shows skyscraper office properties at the La Defense business district in Paris, France, Sept 30, 2022. REUTERS/Benoit Tessier/File photo

PARIS  – The French economy grew by 0.1 percent in the third quarter, with growth slowing from the previous quarter but staying just above zero thanks to household spending, preliminary data from the Insee statistics agency showed on Tuesday.

Household consumption was up by 0.7 percent, while Insee data also showed that inflationary pressures in the euro zone’s second-biggest economy continued to ease.

“The upturn in household growth is good news. It drove growth in the third quarter,” Finance Minister Bruno Le Maire told reporters, confirming a 1 percent full-year growth target for 2023.

Le Maire also said recent trends of easing inflation would allow France to meet its 2024 growth target of 1.4 percent.

Third quarter growth was in line with forecasts. A Reuters poll of 26 economists had an average forecast of 0.1 percent, with estimates ranging from 0.5 percent to -0.3 percent.

The economy grew a revised 0.6 percent in the second quarter, Insee said.

French inflation slowed in October as prices in the energy and food sector continued to ease, preliminary EU-harmonized data also showed.

Consumer prices rose 4.5 percent in October from a year earlier, after a 5.7- percent rise in September, Insee said.

The inflation figure was in line with a consensus of 15 economists polled by Reuters.