Global| May 20 2005French GDP Growth Slows in Q1; Data Rebased to 2000 Prices
Summary
GDP growth in France slowed markedly in Q1 to 0.2% from 0.7% in Q4 2004. A smaller gain in household consumption and an outright decline in exports were responsible for the sluggish Q1 performance. Notably, however, fixed capital [...]
GDP growth in France slowed markedly in Q1 to 0.2% from 0.7% in Q4 2004. A smaller gain in household consumption and an outright decline in exports were responsible for the sluggish Q1 performance. Notably, however, fixed capital formation sustained its Q4 gain of 1.3%; of this, nonfinancial corporations' capital investment grew 1.6%, making for a 4.0% advance year-on-year.
By industry, value added in manufacturing fell 0.2%, with declines in intermediate goods and automobile production. Among service-producing industries, overall growth was 0.3%, following 0.7% in Q4. Performances of individual service sectors was quite mixed, with declines, for instance, in transportation and personal services, but further sizable increases in finance and real estate.
The volume measures in this GDP report for France are the first using 2000 as a base year, moving from 1995. The data are all revised historically. The price measures still have fixed weights, with 2000 prices. Chain-weighting of price indexes is set to be introduced in May 2006. In the table below, we show total GDP growth at 1995 prices; a quick comparison of these few observations suggests that the switch in base years had little impact on basic growth patterns, although it did alter individual periods.
| France | Q1 2005 | Q4 2004 | Year/Year | 2004 | 2003 | 2002 |
|---|---|---|---|---|---|---|
| GDP - 2000 Prices | 0.2 | 0.7 | 1.7 | 2.1 | 0.9 | 1.3 |
| Memo: GDP - 1995 Prices | -- | 0.9 | -- | 2.4 | 0.5 | 1.1 |
| Household Consumption | 0.7 | 1.1 | 2.2 | 2.3 | 1.6 | 2.3 |
| Gross Fixed Capital Formation | 1.3 | 1.3 | 3.3 | 2.2 | 2.7 | -1.7 |
| Exports | -0.1 | 0.9 | 2.1 | 2.4 | -1.7 | 1.5 |
| Imports | 0.6 | 1.0 | 7.0 | 6.1 | 1.3 | 1.5 |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
More Economy in Brief
