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Macroeconomic outlook report: France

Second quarter of 2017

During the second quarter of 2017, French GDP recorded an increase of 0.69 p.p. in its y/y growth rate with respect to the previous quarter, up to 1.85%. This behavior was due to the stronger growth rate of gross fixed capital formation and exports. The unemployment rate fell by 0.10 p.p. to 9.5%, while the year-on-year growth rate of employment increased by 0.03 p.p. to 1.18%. With respect to the exchange rate, the euro registered an appreciation against the dollar of 0.04 $/€ 2Q17, recording an exchange rate of 1.10 $/€.

Macroeconomic Overview

    • During the second quarter of 2017, French GDP recorded an increase of 0.69 p.p. in its y/y growth rate with respect to the previous quarter, up to 1.85%. This behavior was due to the stronger growth rate of gross fixed capital formation and exports.
    • Domestic demand accelerated by 0.37 p.p. when compared to the first quarter of 2017, growing at 2.37%. This behavior was due to higher fixed capital investment growth and an acceleration of general government consumption, which offset the lower year-on-year growth rates of private consumption.
    • The unemployment rate stood at the 9,5% over the total working population at the end of the second quarter, after experiencing a reduction of 0.10 p.p. when compared to the previous quarter. The y/y growth rate of employment stood at 1.18% after increasing by 0.03 p.p.
    • The euro recorded an appreciation against the dollar, with the exchange rate standing at 1.10 $/€ in 2Q17, which means an increase of 0.04 $/€ when compared to 1Q17. This appreciation of the euro against the dollar is due to the improved growth prospects of European economies and the uncertainty around the fiscal policy of the new US government.
    • The French Consumer Price Index stood at 0.90% in the second quarter of 2017, after decreasing by 0.30 p.p. compared to the previous quarter. The main determinant of this lower inflation during this quarter was the decrease in growth of energy and communication prices.

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    © GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.