France’s real GDP grew by 0.3% in Q2 2024, consistent with the growth rate of the previous quarter, as reported by the National Institute of Statistics and Economic Studies (INSEE).
Overall production experienced a notable recovery in Q2 2024, rising by 0.5% after a 0.1% decline in the first quarter.
However, the manufacturing sector continued to face challenges, with output decreasing by 0.4%, following a 0.7% drop in the prior quarter.
Final domestic demand, excluding inventories, saw a slight uptick and positively contributed to GDP growth, adding 0.
1 percentage points after making no contribution in Q1 2024. This improvement was driven by a modest rebound in gross fixed capital formation (GFCF), which grew by 0.1% after a 0.4% decline in the previous quarter. Household consumption remained unchanged, neither rising nor falling, after a slight 0.
1% decline in Q1, according to INSEE.
Foreign trade also positively impacted growth in Q2 2024, contributing 0.2 percentage points after a 0.3 percentage point contribution in the previous quarter. Imports remained steady, showing no change after a 0.3% decline in Q1, while exports continued to be strong, increasing by 0.6% following a 0.7% rise in the previous quarter.
Finally, changes in inventories had no effect on GDP growth this quarter, maintaining a neutral contribution as in Q1 2024.
