GDP grew 0.2% in the fourth quarter of 2015, according to preliminary estimates released Friday by INSEE. An increase that allows growth to reach 1.1% for the full year after 0.2% in 2014.
Figures released Friday are online with the latest estimate by INSEE. To account for the effects of attacks in Paris and Saint-Denis but also a particularly mild weather year-end, official statisticians had revised down their initial estimate of 0.4%. For its part, the Bank of France showed a further optimism zest anticipating an increase of 0.3% for the fourth quarter.
“2015 was the year of the recovery “, says Michel Sapin, Minister of Finance. “Despite the inevitable consequences of the attacks” of November 13, “the French did not give up”
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Investment, production and rising consumption
In detail, throughout the year, if the total investment stagnates , the companies showed an increase of 2%. The recovery in business spending is particularly noticeable in construction with an increase in the third quarter “for the first time since 2013″. In the manufacturing sector, investment spending also accelerate by year’s end.
Similarly, total production increased by 1.3% throughout the year. “It accelerates in manufacturing and market services while the decline in construction is growing,” explains INSEE.
As for household consumption, if it accelerates throughout the year (+ 1.4% after 0.6% in 2014), it is experiencing a cold snap in the fourth quarter with a decline of 0.4% which follows up the same scale. This against-performance however was widely expected as it reflects both against the shock of the attacks of 13 November on the behavior of French but also lower energy costs associated with a much milder winter than usual.
stocks Boost
Finally, if foreign trade still weigh on growth, GDP has once more of a boost due to inventory changes. These contribute 0.2 points to the growth of the whole year, Insee said stressing that the last quarter alone, “storage concerns including refined petroleum products and capital goods’ .
A related behavior of a part in the continued decline in oil prices and, for capital goods, the acceleration of investment expenditure recorded by INSEE this period.
First encouraging elements 2016
But this is now turning towards the future that is looks. And first published figures are somewhat encouraging. In January Indeed, consumer confidence has improved slightly, the French sounding more confident about the outlook for living standards in France. Similarly, the business climate appears, too, a slight improvement, driven by services, retail trade and construction
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