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Macroeconomic outlook report: France

Fourth quarter of 2017

During the fourth quarter of 2017, France’s GDP increased its year-over-year growth rate 0.11 p.p. with respect to the previous quarter, staying at 2.45%. The year-over-year growth rate of domestic demand decreased to 2.13%. Regarding the labor market, the unemployment rate decreased with respect to the third quarter of the year, reaching 8.90%, while the growth rate of employment fell to 0.93%. The euro appreciated against the dollar, registering an exchange rate of 1.18 $/€. Finally, inflation registered a 1.17% rate.

Macroeconomic Overview

    • During the fourth quarter of the year, the French economy increased its year-over-year growth rate by 0.11 p.p. with respect to the previous quarter, registering a rate of 2.45%. This behavior was driven by the growth of the manufacture and service sector as well as by the increase in exports. In annual terms, the French GDP showed a year-over-year growth rate of 1.96% in 2017.
    • On the other hand, the year-over-year growth rate of domestic demand fell by 0.38 p.p. to 2.13%, driven by the deceleration in private consumption.
    • Regarding the labor market, the unemployment rate decreased 0.70 p.p., down to 8.90%, while the growth rate of employment fell by 0.13 p.p., standing at 0.93%..
    • The euro appreciated against the US dollar by 0.01 dollars per euro compared to the previous quarter, registering an exchange rate of 1.18 $/€. This appreciation was due to the European economic situation, based on sustained growth, low inflation and the behavior of the foreign sector.
    • Inflation registered a rate of 1.17% in the fourth quarter of 2017, 0.30 p.p. above the rate registered in the previous quarter. The main driver of this behavior was the evolution of the services 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.