Growth in France’s gross domestic product (GDP) slowed to 0.1% in the third quarter, barely remaining in positive territory thanks to the rebound in household consumption, according to a first estimate from INSEE published on Tuesday.
This modest increase in GDP between July and September, in line with the forecast of the National Institute of Statistics, marks a clear slowdown compared to the growth of 0.6% recorded in the second quarter – INSEE revised it in increase of 0.1 point.
Growth of 0.9% over the year
For the whole of 2023, INSEE anticipates growth of 0.9%, identical to the forecast of the Banque de France and a little below that of the government (+1%).
After sluggishness, household consumption of goods and services increased by 0.7% in the third quarter, marked in particular by an increase in food consumption, in a context of easing inflation. Business investment continued to show dynamism (+1.5%).
On the other hand, after a dynamic second quarter, exports contracted by 1.4% over the period, so that the contribution of foreign trade to growth is negative.
Manufacturing production also fell, by 0.3%, and that of market services slowed to 0.3%.
Inflation slows
Inflation slowed significantly in France in October, to 4% over one year after 4.9% in September, according to provisional data communicated Tuesday by INSEE.
This drop in inflation is due, according to the Institute of Statistics, to the slowdown over one year in the prices of energy, food and, to a lesser extent, manufactured products. The prices of services would accelerate slightly. Over one month, consumer prices should increase by 0.1% in October 2023, after -0.5% in September.
“We are emerging from the inflationary crisis,” said Economy Minister Bruno Le Maire on Tuesday.