The Gross Domestic Product (GDP) of France, the second largest economy of the Eurozone, decreased by 0.1 percent in the first quarter of the year compared to the previous quarter.
According to the final data of the French National Institute of Statistics (INSEE), GDP in the country decreased by 0.1 percent in the first quarter of the year compared to the previous quarter. Thus, INSEE revised downwards the leading data it had previously announced as 0 percent.
The main reason for this weak performance in the economy was the sharp decline in exports. Exports, which increased by 0.9 percent in the previous quarter, decreased by 3.5 percent in the first quarter of the year.
The decrease in deliveries, especially in the aircraft and aviation sector, played a decisive role in this decline in exports. On the other hand, household consumption expenditures decreased by 0.2 percent as consumers turned to savings.
INFLATION INCREASED
In addition to the economic stagnation, inflationary pressure also increased in the country. The consumer price index (CPI) in France, which was 2.5 percent in April, increased to 2.8 percent in May.
Data revealed that the main factor behind the rise in inflation was increasing energy costs, especially natural gas.
