The French economy slightly exceeded analysts’ expectations in the first quarter of 2023, according to preliminary data from the INSEE statistics agency. The country’s second-largest economy grew by 0.2% in the first three months of the current year, following a 0.1% growth in the fourth quarter of 2023, as reported in the quarterly GDP report by INSEE.

Household spending growth accelerated to 0.4% in the first quarter, compared to 0.2% in the fourth quarter of 2023. A Reuters poll of 29 economists had forecasted an average growth of 0.1% in gross domestic product (GDP) for the first quarter, with estimates ranging from 0.0% to +0.2%. The growth in the quarter was in line with the Bank of France’s expectations announced in early April.

The French economy showed positive momentum for the rest of the year as it continued to recover from economic challenges posed by COVID-19 pandemic, despite falling short of some analysts’ predictions for a stronger performance