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Macroeconomic outlook report: France

Fourth quarter of 2018

During the last quarter of 2018, France’s GDP registered a year-over-year growth rate of 0.92%, 0.39 p.p. lower than to the previous quarter. The main driver of the performance of GDP in 2Q18 was the deceleration of both the domestic and external demand. Regarding the labor market, the unemployment rate decreased by 0.30 p.p. with respect to the third quarter of the year, reaching 8.80%, while the growth rate of employment fell to 0.45%. The euro depreciated against the dollar, registering an exchange rate of 1.14 $/€. Finally, inflation registered a 1.90% rate.

Macroeconomic Overview

  • During the last quarter of the year, the French economy decreased its year-over-year growth rate by 0.39 p.p. with respect to the previous quarter, registering a rate of 0.92%. This was due to the slowdown in domestic demand, after growth in private consumption, public consumption and investment declined. In addition, external demand contributed negatively to GDP growth, following an exceptional increase in imports.
  • Regarding the labor market, the unemployment rate decreased 0.30 p.p., to 8.80%; while the growth rate of employment decreased by 0.09 p.p., standing at 0.45%.
  • The euro depreciated against the US dollar by 0.02 dollars per euro compared to the previous quarter, registering an average exchange rate of 1.14 $/€.
  • Inflation registered a rate of 1.90% in the last quarter of 2018, 0.37 p.p. below the rate registered in 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.