The growth of the Gross Domestic Product (GDP) was indeed 0.3%, with the good news coming from household consumption expenditures which are accelerating, increasing by 0.4%, according to the second estimate by Insee published this Friday, compared to +0.2% in the second quarter and +0.3% in the first quarter. This is therefore the best performance of the year.
This consumption was boosted by the acceleration of purchasing power, which rose by 0.6%, compared to 0.5% in the previous quarter, due to the 17 billion euros worth of post-Yellow Vests measures implemented by the government. At the same time, the gross disposable income (GDI) of households accelerates: +0.8% after +0.2%.
These good results in a context of slowing growth in Europe are achieved despite a negative contribution of external trade to GDP, by 0.2 percentage points, with exports being affected by trade wars and the slowdown in global trade.
These good results could even be revised upward in the long term, that is to say an annual growth of 1.4% this year instead of 1.3%.
Finally, “the public deficit is sharply reduced” to 2.5% of GDP, compared to 3.1% in the previous quarter.
