THE French economy dodged a contraction in the final quarter of last year despite inflation forcing households to reduce spending, and grew 2.6% for the year, data showed today.

The figures were better than projections of GDP expanding at 2.5% for the year, and for a contraction of 0.2% in the fourth quarter, when in fact the French economy grew by 0.1%, according to data released by the government’s Insee statistics office.

The momentum from a strong rebound at the end of 2021, as the country recovered from the downturn caused by the Covid pandemic, helped at the start of last year, before rising inflation and the fallout from the Ukraine war began to put the brakes on growth.

Household spending dropped by 0.9% by in the final three months of the year, but foreign trade contributed positively as imports fell by 1.9%, outweighing a 0.3% dip in exports. 

Finance Minister Bruno Le Maire said the result was “testimony to the strong rebound of our economy after the Covid shock and its resilience in the face of the energy crisis”, praising the “exceptional… resistance capacity” of French companies and households. – AFP, January 31, 2023.