Insee
Informations Rapides · 31 May 2023 · n° 135
Informations rapidesIn Q1 2023, GDP grew moderately (+0.2%) while the purchasing power of household GDI per consumption unit fell (-0.6%) Quarterly national accounts - detailed figures - first quarter 2023

In Q1 2023, the gross domestic product (GDP) growth in volume terms is confirmed at +0.2%.

Household gross disposable income (GDI) per consumption unit fell by 0.6% in Q1 2023 (after +1.2% in Q4). The household saving rate decreased this quarter to 18.3% of their income, after 18.7% in Q4 2022.

The margin rate of non-financial corporations (NFC) increased by 0.4 points, 32.3% of their added value, after 31.9%.

Informations rapides
No 135
Paru le :Paru le31/05/2023
Prochaine parution le : 30/08/2024 at 08:45 - second quarter 2024

In Q1 2023, the gross domestic product (GDP) growth in volume terms is confirmed at +0.2%.

Household gross disposable income (GDI) per consumption unit fell by 0.6% in Q1 2023 (after +1.2% in Q4). The household saving rate decreased this quarter to 18.3% of their income, after 18.7% in Q4 2022.

The margin rate of non-financial corporations (NFC) increased by 0.4 points, 32.3% of their added value, after 31.9%.

In Q1 2023, GDP grew by 0.2%

In Q1 2023, the GDP in volume terms* increased moderately (+0.2% quarter-on-quarter, after +0.0% in Q4 2022). Household consumption was virtually stable (+0.1% after -1.0%): food consumption fell sharply again (-2.7% after -2.9%), but this was offset by a rebound in energy consumption (+5.7% after -8.0%). The gross fixed capital formation (GFCF) fell sharply (-0.8% after +0.2%), dragged down by investment in construction (-1.1% after +0.0%). In total, final domestic demand excluding inventories contributed negatively to GDP growth (-0.2 points after -0.3 points).

Foreign trade slowed down: imports in particular fell sharply again (-2.8% after -0.8%), due to a sharp drop in imports of goods. Exports decreased more moderately (-0.2% after +0.2%). The contribution of foreign trade to GDP growth was therefore positive for the second consecutive quarter (+1.0 point after +0.3 points).

Finally, the contribution of inventory changes to GDP growth was negative this quarter (-0.6 points after -0.1 points in Q4 2022).

* Volumes are measured at previous year's prices, chain-linked and adjusted for seasonal variations and working day effects (SA-WDA).

GDP and its main components

GDP and its main components
Inventory changes Net foreign trade Consumption GDP GFCF
2023-Q1 -0.58 0.99 -0.05 0.2 -0.19
2022-Q4 -0.06 0.34 -0.34 0.0 0.04
2022-Q3 0.42 -1.54 0.74 0.2 0.56
2022-Q2 0.17 0.46 -0.23 0.5 0.13
2022-Q1 0.41 -0.16 -0.48 -0.1 0.1
2021-Q4 0.81 -0.63 0.41 0.5 -0.08
2021-Q3 -1.08 0.71 3.41 3.1 0.03
2021-Q2 -0.35 0.14 0.78 1.0 0.41
2021-Q1 0.41 -0.64 0.19 0.0 0.05

GDP and its main components

  • Source: INSEE

GDP and its main components

percentage change from previous period, working-day and seasonally adjusted data
GDP and its main components (percentage change from previous period, working-day and seasonally adjusted data)
2022 Q2 2022 Q3 2022 Q4 2023 Q1 2022 2023 (ovhg)
GDP 0.5 0.2 0.0 0.2 2.5 0.4
Imports 0.2 4.0 -0.8 -2.8 8.7 -1.4
Household consumption expenditure -0.3 1.3 -1.0 0.1 2.1 -0.1
General government’s consumption expenditure -0.4 0.4 0.7 -0.4 2.6 0.2
GFCF 0.5 2.3 0.2 -0.8 2.3 0.6
Of which non-financial corporations and unincorporated enterprises 0.6 4.1 0.6 -0.4 3.8 2.3
Households 1.0 -1.0 -1.2 -2.3 -1.3 -3.4
General government -0.6 0.9 0.4 0.0 1.5 0.6
Exports 1.7 -0.7 0.2 -0.2 7.2 0.1
Contributions:
Internal demand excluding inventory changes -0.1 1.3 -0.3 -0.2 2.4 0.2
Inventory changes 0.2 0.4 -0.1 -0.6 0.7 -0.4
Net foreign trade 0.5 -1.5 0.3 1.0 -0.6 0.6
  • This growth rate is seasonally and working-day adjusted; volumes are chain-linked previous-year-prices volumes.
  • Source: INSEE

Production, consumption and GFCF: main components

percentage change from previous period, working-day and seasonally adjusted data
Production, consumption and GFCF: main components (percentage change from previous period, working-day and seasonally adjusted data)
2022 Q2 2022 Q3 2022 Q4 2023 Q1 2022 2023 (ovhg)
Production of branches 0.9 0.4 -0.1 0.4 3.7 0.8
Goods 0.1 0.2 -0.3 1.3 0.5 1.1
Manufactured industry 0.7 0.6 -0.8 0.7 1.7 0.5
Construction -0.3 -0.2 -0.1 -0.7 -0.7 -0.9
Market services 1.8 0.6 0.0 0.2 6.5 0.9
Non-market services -0.5 0.3 0.2 0.3 1.1 0.4
Household consumption -0.3 1.3 -1.0 0.1 2.1 -0.1
Food products -1.5 -1.1 -2.9 -2.7 -3.7 -5.7
Energy -2.1 1.4 -8.0 5.7 -4.1 -0.6
Engineered goods -0.2 -0.2 0.3 0.0 -1.1 0.1
Services 2.4 0.2 0.6 0.6 8.5 1.7
GFCF 0.5 2.3 0.2 -0.8 2.3 0.6
Manufactured goods -0.1 7.1 1.1 -0.8 3.4 3.3
Construction -0.4 0.0 0.0 -1.1 -0.9 -1.3
Market services 1.9 2.3 -0.2 -0.2 5.4 1.3
  • Source: INSEE

Household purchasing power declined in Q1 2023

Household gross disposable income (GDI) in current euros slowed down in Q1 2023 (+1.6% after +3.3%). The wage bill received by households rose by 1.3% (after +2.0%): this slowdown reflected, in particular, less use of the value-sharing bonus, following the large payments made in Q4 2022. As a result, average wage per capita slowed down this quarter (+1.2% after +1.7%). Moreover, salaried employment slowed again (+0.1% after +0.2%). In addition, as a result of theabolition of the public service broadcasting contribution at the end of 2022, taxes rebounded (+1.6% after -4.4%). In contrast, social cash benefits remained buoyant (+0.9% after +0.8%), driven by the payment of a fuel allowance and the revaluation of retirement pensions.

At the same time, the household consumption deflator remained very dynamic (+2.0% after +1.9%). Thus, the purchasing power of household GDI fell (-0.4% after +1.3%). Measured per consumption unit to be brought back to an individual level, it fell by 0.6% in Q1 2023 (after +1.2%).

Household consumption expenditure in value terms rose by 2.1% this quarter, i.e. 0.5 points more than gross disposable income (+1.6%). As a result, the household saving rate decreased this quarter to 18.3%, after 18.7% in Q4 2022. It remained well above its pre-crisis average level (15.0% in 2019).

Households’ disposable income and ratios of households’ account

percentage change from previous period, working-day and seasonally adjusted data
Households’ disposable income and ratios of households’ account (percentage change from previous period, working-day and seasonally adjusted data)
2022 Q2 2022 Q3 2022 Q4 2023 Q1 2022 2023 (ovhg)
HDI 1.2 2.6 3.3 1.6 5.1 5.6
HDI (purchasing power) -0.7 0.9 1.3 -0.4 0.2 0.8
HDI by cu* (purchasing power) -0.8 0.8 1.2 -0.6 -0.4 0.5
Adjusted HDI (purchasing power) -0.6 0.8 1.2 -0.4 1.1 0.7
Saving rate (level) 17.1 16.8 18.7 18.3 17.5
Financial saving rate (level) 5.6 5.4 7.6 7.4 6.2
  • * cu: consumption unit
  • Source: INSEE

Total hours worked slowed down a bit

Total hours worked increased by 0.5% in Q1 2023 (after +0.6% in the previous quarter). Total employment rose by 0.2% (after +0.3%), while the number of hours per job increased by 0.3% (as in the previous quarter), due to a further fall in the number of sick days, and despite a rise in the number of strike days.

The margin rate of non-financial corporations increased

In Q1 2023, the margin rate of non-financial corporations (NFC) rose by 0.4 percentage points, to 32.3% after 31.9%. The increase in the margin rate was essentially due to lower taxes net of subsidies on production, as a result of the sharp drop in the Company Value Added Contribution (CVAE) and an increase in support for paying energy bills. Productivity per capita fell for the third consecutive quarter, but its effect on the margin rate was offset by a decline in real wages.

Savings by NFCs fell (-1.8% after +2.7%), due to the rebound in corporate income tax. At the same time, NFC investment slowed but continued to rise in value (+0.4% after +1.5%). As a result, the self-financing rate of NFCs fell this quarter to 84.1% (after 86.0% last quarter).

Ratios of non-financial corporations’s account

level (in percent), WDA-SA data
Ratios of non-financial corporations’s account (level (in percent), WDA-SA data)
2022 Q2 2022 Q3 2022 Q4 2023 Q1 2022
Profit share 31.8 31.9 31.9 32.3 31.7
Investment ratio 25.4 26.4 26.3 26.0 25.9
Savings ratio 21.3 22.5 22.6 21.8 22.2
Self-financing ratio 84.1 85.1 86.0 84.1 85.7
  • Source: INSEE

The general government borrowing requirement fell

In Q1 2023, the general government borrowing requirement fell by 1.2 points of GDP, following two consecutive quarters of increase. It stood at 5.1% of GDP, after 6.3% in Q4 2022. Public spending slowed sharply (+0.3% after +1.6%), held back by the impact of last quarter's payment of an exceptional energy voucher and by a fall in interest charges after several quarters of strong growth. On the opposite, public revenues rebounded sharply (+2.4% after -1.2%), mainly due to a rebound in income tax revenues (+4.9% after -6.3%), particularly corporate income tax.

Expenditure, receipts and net borrowing of public administrations

level, WDA-SA data
Expenditure, receipts and net borrowing of public administrations (level, WDA-SA data)
2022 Q2 2022 Q3 2022 Q4 2023 Q1 2022
In billions of euros
Total expenditure 378.9 388.4 394.5 395.8 1536.0
Total receipts 356.8 356.4 352.2 360.6 1411.5
Net lending (+) or borrowing (–) -22.1 -32.0 -42.2 -35.1 -124.5
In % of GDP
Net lending (+) or borrowing (–) -3.4 -4.8 -6.3 -5.1 -4.7
  • Source : Insee

Revisions

As every year in May, due to the calibration of the quarterly accounts to the new definitive 2020, semi-definitive 2021 and provisional 2022 annual accounts, re-estimation of the seasonal and working day adjustment models (SA-WDA), and various methodological improvements, the quarterly accounts are more likely to be revised.

Growth for 2022 has thus been revised downwards by 0.1 points to +2.5% in constant euros. On the other hand, GDP growth for Q1 2023 has been confirmed at +0.2%, as in the first estimate, but with altered contributions to growth. In particular, GFCF has been revised downwards, so that the contribution of final domestic demand to growth has been revised downwards to -0.2 points (versus -0.1 points in the first estimate). Exports have also been revised downwards, but less than imports, taking the contribution of foreign trade to +1.0 point (versus +0.6 points in the first estimate). All these revisions are offset by the revised contribution of inventory variations, leaving GDP growth unchanged.

To go further

Next publication: 28 July 2023, at 7:30 am.

Documentation

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