French GDP increased in Q4 (+0.6%), households purchasing power slowed down (+0.2% after +0.5%)Quarterly national accounts - detailed figures - 4th Quarter 2009

In the fourth quarter, French GDP growth in volume* is confirmed (+0.6%, after +0.2% in the previous quarter). On the whole year, GDP fell down by 2.2%, the largest drop since the world war two.

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No 85
Paru le : 30/03/2010
Prochaine parution le : 22/09/2017 at 08:45 - second quarter 2017

In the fourth quarter, French GDP growth in volume* is confirmed (+0.6%, after +0.2% in the previous quarter). On the whole year, GDP fell down by 2.2%, the largest drop since the world war two.

Households’ consumption expenditures bounced

Production’s growth slightly increased (+0.6% after +0.3%).

Households’ consumption’s expenditures speeded up (+1.0% after +0.1%) whereas total GFCF decreased at the same pace as in the last quarter (–1.3%). Altogether, total domestic demand (excluding inventory changes) positively contributed to GDP growth: +0.5 point after –0.1 point in the third quarter. Inventory changes buoyantly contributed to activity’s surge: +1.0 point after –0.1 point. Foreign trade balance negatively contributed to GDP growth (–0.7 point after +0.3 point): exports levelled out (+0.0% after +1.8%), however imports soared (+3.2% after +0.2%).

As for annual growth, households’ consumption expenditures’ growth was steady (+0.8% after +0.9% in 2008) whereas total GFCF slumped by 7.0% (after +0.4%). Foreign trade’s decline negatively contributed to GDP annual growth (–0.1 point after –0.3 point), inventory changes to –1.4 point (after –0.3 point in the previous year).

* This growth rate is seasonally and trading-day adjusted; volumes are chain-linked previous-year-prices volumes.

Graph1 – GDP and its main components

Tab1 – GOODS AND SERVICES: RESOURCES AND USES CHAIN-LINKED VOLUMES

percentage change from previous period, trading-days and seasonally adjusted data
GOODS AND SERVICES: RESOURCES AND USES CHAIN-LINKED VOLUMES
2009 Q1 2009 Q2 2009 Q3 2009 Q4 2008 2009
GDP -1,3 0,3 0,2 0,6 0,3 -2,2
Imports -5,7 -2,5 0,2 3,2 0,6 -9,6
Households' consumption expenditure 0,1 0,3 0,1 1,0 0,9 0,8
General government's consumption expenditure 0,0 0,6 0,6 0,7 1,1 1,6
GFCF -2,5 -1,0 -1,3 -1,3 0,4 -7,0
of which Non financial corporated and unincorporated enterprises -3,6 -1,1 -1,0 -0,9 2,4 -7,8
Households -1,8 -1,6 -2,1 -2,4 -1,4 -8,2
General government -0,6 0,7 -1,2 -0,4 -4,5 -3,3
Exports -6,7 0,5 1,8 0,0 -0,6 -10,9
Contributions :        
Internal demand excluding inventory changes -0,5 0,1 -0,1 0,5 0,9 -0,7
Inventory changes -0,8 -0,6 -0,1 1,0 -0,3 -1,4
Net foreign trade -0,1 0,8 0,4 -0,8 -0,3 -0,1

    Households disposable income decelerated

    Nominal gross disposable income slowed down in Q4 (+0.5% after +0.8%). Inflation kept increasing this quarter. As a whole, purchasing power decelerated this quarter (+0.2% after +0.5%). After having noticeably decreased past quarter, income and wealth taxes increased this quarter (+0.6% after –3.5%). They were the main contributor to the slowdown. On the contrary wages and social benefits grew faster this quarter. Social benefits in cash upturned (+1.0% after +0.4%) and went back to the progression pace before the one-off bonuses of the stimulus package. Total wages accelerated slightly (+0.4% after +0.2%).

    In 2009, households nominal gross disposable income grew by 1.9%. Inflation has decreased in 2009 and contributed positively to purchasing power which increased by 2.1% (after +0.7% in 2008). Total wages were steady in 2009 after growing by +3.3% in 2008. The dynamism of purchasing power is explained by two factors. First, income taxes slumped by 3.0%. Second, social benefits in kind grew by 4.8%.

    Households saving rate decreased this quarter by 0.7 point to reach 16.3%. In 2009 saving rate is at 16.4% a level never reached since 2002.

    Profit ratio of non financial corporation slightly decreased

    Value added of non financial corporation accelerated this quarter (+0.9% after +0.3%), meanwhile wages grew by 0.9% after being steady last quarter. Finally, profit ratio diminished by 0.2 point at 30.4%. In 2009 value added decreased more noticeably (–1.7%) than wages (–1.0%), as a consequences profit ratio loosed 0.7 point at 30.4%.

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