Growth in 2016 is stable compared to 2015: according to the latest estimates from INSEE, the GDP would have increased by 1.1% in 2016, representing a decrease of 0.1 point compared to 2015.
If the estimate were to be confirmed at the time of assessment, the government would have missed its forecasts, which initially predicted 1.5%, then, after revision, 1.4%. This means that 3 to 4 billion euros would be missing in terms of growth.
GDP growth is driven by household consumption, which grew by 1.8% in 2016 (compared to 1.5% in 2015), notably supported by “the purchase of household equipment goods in the first half,” INSEE highlights.
Total business investment also accelerated in 2016, with an increase of 2.7%, that is 1.8 points more than in 2015. It is in the area of investment in manufactured goods where growth was the strongest with an increase of 1.3% in 2016 after a decline of 2.4% in 2015.
Production experienced a slight increase compared to 2015, (1.4% after 1.3%), especially thanks to the construction sector. Conversely, agricultural production collapsed (-5.7%), “due to unfavorable weather conditions,” INSEE indicates.
From the perspective of foreign trade, exports slowed down in 2016 (+1.1% after +6.0%) and a similar albeit less pronounced phenomenon occurred with imports (+3.7% after +6.4%).
