French economy - Accounts and files2015 Edition

“French economy - Accounts and files” presents every year a summary of the evolutions of French and international economies. Based on national accounts, this book analyses the main events which happened in 2014.

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Paru le : 12/06/2015
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Slow growth for the French economy in 2014

Vincent Alhenc-Gelas, Vincent Biausque, Sylvain Larrieu, Camille Sutter

Despite the rebound in purchasing power due to disinflation, the French economy grew slowly in 2014: GDP progressed by just 0.2% in volume after +0.7% in 2013. Domestic demand excluding inventory accounted for +0.5 points of growth by volume in GDP, like in 2013 (figure 1). Household consumption accelerated slightly (+0.6% in volume after +0.4% in 2013), in the wake of the strong rebound in purchasing power (+1.1% after -0.1% in 2013), part of which was reflected in a rise in savings of 0.4 points, to 15.1% on average over the year. In nominal terms, household income gained momentum (+1.1% after +0.7% in 2013), while consumer prices again slowed down considerably (0.0% after +0.8% in 2013). Domestic demand remained stable due to the momentum of general government consumption expenditure (+1.6% in volume, like in 2013), whereas its investment declined sharply (-6.9% after +0.1% in 2013). The volume of investment among non-financial enterprises picked up (+2.0% after +0.5% in 2013), whereas household investment, primarily in housing, fell back for the third consecutive year (-5.3% in 2014). All in all, investment in all sectors declined in 2014 (-1.2% in volume) more sharply than in 2013 (-0.6%). In 2014 exports gainedmomentum, with volume growth reaching +2.4% after +1.7%. But imports accelerated even more vigorously (+3.8% in volume, after +1.7% in 2013), a phenomenon that is only very partially explained by the dynamics of the components of demand, in which import content is high (household consumption, corporate investment, exports). All in all, the contribution of foreign trade to GDP growth became negative (-0.5 points after 0.0 points). Finally, corporate inventory behaviour again contributed positively to GDP growth in 2014 (+0.2 points, like in 2013).

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Paru le : 12/06/2015