The French economy contracted surprisingly at the beginning of the year. Economic output (GDP) fell by 0.2 percent in the first quarter compared to the previous quarter, according to a second estimate by the Insee statistics office in Paris on Tuesday. A first survey showed that GDP was stagnating. Analysts had expected confirmation of the preliminary data.
The contraction follows moderate growth of 0.4 percent in the top quarter of 2021. According to Insee, the main reason for the weak development was private consumption, which was 1.5 percent weaker at the beginning of the year than before the turn of the year. In contrast, business investment rose 0.6 percent after falling in the previous quarter. Foreign trade and companies’ warehousing supported the overall development slightly. (dpa)