2023-08-31 09:33:06
This rebound in French economic activity between April and June comes following zero GDP growth in the first quarter, which was revised down by 0.1 points by the National Institute of Statistics.
This is due to the good performance of foreign trade, even if imports were higher than initial estimates, especially energy products.
On the other hand, household consumption, which is the traditional engine of growth, decreased by 0.5 percent due to the significant decline in food purchases (-2.8 percent), which is still affected by high inflation.
At the same time, the purchasing power of households rose slightly, under the influence of lower tax charges and increased social benefits, and the savings rate rose to 18.8 percent from 18.2 percent in the previous quarter, which is a bad sign for consumption.
On the other hand, commercial investments declined slightly (-0.1%) affected by the construction sector, in the context of higher interest rates aimed at combating inflation.
On the other hand, the consumer price index increased by 4.8 percent on an annual basis in August, which is a strong recovery compared to July when inflation reached 4.3 percent, according to INCII figures.
The acceleration of the price hikes recorded in August, the first since April, is attributed to “high energy prices,” especially the 10 percent increase in state-supervised electricity prices on August 1.
© 2023 AFP
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