France's GDP increases by 0.3% in Q2 2024

France's real gross domestic product (GDP) increased by 0.3 per cent in the second quarter (Q2) of 2024, mirroring the growth rate of the previous quarter, according to the National Institute of Statistics and Economic Studies (INSEE).

Total production saw a significant rebound in Q2 2024, rising by 0.5 per cent after a decline of 0.1 per cent in the first quarter. Despite this overall growth, the manufacturing sector continued to struggle, with output falling by 0.4 per cent, following a 0.7 per cent decline in the previous quarter.

Final domestic demand, excluding inventories, picked up slightly and contributed positively to GDP growth, adding 0.1 percentage points after making no contribution in the first quarter of 2024. This improvement was attributed to a slight rebound in gross fixed capital formation (GFCF), which increased by 0.1 per cent after a 0.4 per cent decline in the previous quarter. Household consumption remained stable, neither increasing nor decreasing, after a slight decline of 0.1 per cent in the first quarter, as per INSEE.

Foreign trade also made a positive contribution to growth in Q2 2024, adding 0.2 percentage points after contributing 0.3 percentage points in the previous quarter. Imports were stable, showing no change after a 0.3 per cent decline in Q1, while exports remained dynamic, increasing by 0.6 per cent following a 0.7 per cent rise in the previous quarter.

Lastly, changes in inventories had no impact on GDP growth this quarter, maintaining the same neutral contribution as in the first quarter of 2024.

Fibre2Fashion News Desk (DP)