France's economy contracts 0.2% in year's 1st quarter

ANKARA

France’s gross domestic product (GDP) declined 0.2% in the first quarter of 2022 from the previous quarter, according to official data released on Tuesday.

The French economy had expanded 0.4% in the fourth quarter of 2021, compared to the third quarter.

The contraction in GDP was linked to the weakness of household consumption, particularly in transport equipment, other manufactured goods and in accommodation services and restaurants, the National Institute of Statistics and Economic Studies (INSEE) said in a statement.

Foreign trade continued to grow in the first quarter of 2022, but at a slower pace than the fourth quarter of last year, it added.

Consumer inflation in France climbed by 5.2% year-on-year in May, according to provisional estimates released in a separate INSEE statement.

Consumer prices in the country increased by 4.8% on an annual basis in April and by 0.6% on a monthly basis in May.

The INSEE cited “acceleration of energy, service, food and manufactured good prices” as the reasons for rising inflation.​​​​​​​