In the third quarter of 2023, France experienced a slight decline in Gross Domestic Product (GDP) by 0.1%, accompanied by a 0.2% decrease in household purchasing power per consumption unit. Here are the key details:
GDP and Components:
- GDP volume decreased by 0.1% in the third quarter after a notable increase in the previous quarter (+0.6%).
- Household consumption rebounded (+0.6%) due to increased spending on goods, particularly in food and manufactured goods.
- Gross fixed capital formation (GFCF) slowed down, influenced by a decline in construction investment.
External Trade:
- Exports saw a significant decline (-1.0%), primarily driven by transport equipment and services, while imports remained nearly stable (+0.1%).
- The contribution of external trade to GDP growth was negative (-0.4 points).
Household Income and Savings:
- The disposable income of households in current euros increased by 0.9%, with a slight decrease in purchasing power (-0.1%).
- The household savings rate decreased to 17.4% of disposable income, down from 17.9% in the previous quarter.
Corporate Sector:
- The non-financial corporations’ profit margin remained almost stable at 33.0% of value-added.
- The total number of hours worked increased slightly by 0.1%.
Public Finances:
- The deficit of public administrations widened to 4.8% of GDP, up by 0.4 points. Public spending increased by 0.5%, while revenues declined by 0.1%.
Revisions:
- GDP growth for Q3 2023 was revised downward to -0.1%, reflecting adjustments in gross fixed capital formation and consumption.
- External trade contribution was revised to -0.4 points, indicating a more negative impact.