Economic growth slowed down in France in the second quarter. According to Insee, the country’s gross domestic product (GDP) grew by only 0.2.
This weak growth can be explained by an unexpected slowdown in household consumption. This situation undermines the government’s budget scenario, which is threatened by the slowdown in activity within the eurozone. In contrast, investment supported activity. Finally, foreign trade remained neutral for growth.
With these results, which occur in a context of a general slowdown in activity worldwide, the “growth carryover” — that is, the level the GDP would reach at the end of the year if growth remained zero over the next semester — is currently 1%.
