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Macroeconomic outlook report: France

Second quarter of 2019

During the second quarter of 2019, France’s GDP registered a year-over-year growth rate of 1.38%, 0.10 p.p. higher than the one from the previous quarter. The main driver of the performance of GDP in 2Q19 was the acceleration of the domestic demand, offsetting the performance of the external sector. Regarding the labor market, the unemployment rate decreased by 0.20 p.p. with respect to the first quarter of the year, reaching 8.20%, while the employment creation growth rate accelerated by 0.04 p.p. when compared to 1Q18, standing at -0.18%. For its part, inflation registered a 1.13% rate, after a deceleration of 0.07 p.p. when compared to the previous quarter. The euro depreciated against the dollar, reaching an exchange rate of stood at 1.13 $/€ which was 0.01 p.p. lower than the previous quarter.

Macroeconomic Overview

  • During the second quarter of the year, the French economy increased its year-over-year growth rate by 0.10 p.p. with respect to the previous quarter, registering a rate of 1.38%. This was due to the acceleration of the domestic demand, after a higher growth in private consumption, public consumption and investment. However, external demand contributed negatively to GDP growth.
  • Regarding the labor market, the unemployment rate decreased 0.20 p.p. with respect to the last quarter reaching a rate of 8.20%; while the y/y growth rate of employment increased by 0.04 p.p., standing at -0.18%.
  • The euro depreciated against the dollar, reaching an exchange rate of stood at 1.13 $/€ which was 0.01 p.p. lower than 1Q19.
  • Inflation registered a 1.13% rate, after a deceleration of 0.07 p.p. when compared to the previous quarter.

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© GMS Management Solutions, S.L., 2019. 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.