French growth slows down to 0.3 pct in Q1

By Hajer M'tiri

PARIS

French economic GDP growth slightly dropped more than expected in the first quarter of 2018 due to falling business investment and weaker export growth, the country’s national statistics agency said in its preliminary reading on Friday.

In a statement, the National Institute of Statistics and Economic Studies (INSEE) explained a series of factors leading the French growth to drop down to just 0.3 percent -- the slowest rate since the third quarter of 2016 -- after expanding 0.7 percent in the final three months of last year.

Economists had expected growth to slow to 0.4 percent.

According to INSEE statistics, the French household consumption rose by 0.2 percent, keeping the same pace as in fourth quarter of 2017.

However, business investment dropped to 0.6 percent from 1.1 percent and exports weakened slightly by 0.1 percent, having risen by 2.5 percent in October-December.

"All in all, foreign trade balance didn't contribute to GDP growth in Q1. Similarly, changes in inventories were stable and therefore they didn't contribute to GDP growth," the INSEE said.

This came as the eurozone’s second-biggest economy ended last year on strong footing, with its public deficit dropping to 2.6 percent of GDP in 2017, the first time it has fallen below the European Union's 3 percent limit in a decade.