Informations Rapides · 31 August 2023 · n° 216

In Q2 2023, GDP grew significantly (+0.5%), the margin rate of non-financial corporations increased sharply (+1.5 points) Quarterly national accounts - detailed figures - second quarter 2023

In Q2 2023, the gross domestic product (GDP) growth in volume terms is confirmed at +0.5%.

Household gross disposable income (GDI) per consumption unit was virtually stable in Q2 2023: +0.1% after -0.6% in Q12023. The household saving rate increased this quarter to 18.8% of their income, after 18.2% in the previous quarter.

The margin rate of non-financial corporations (NFC) increased sharply this quarter, to 33.2% of their added value after 31.7% in Q1.

General government borrowing requirement decreased slightly (-0.1 points of GDP).

In Q2 2023, the GDP in volume terms* rebounded (+0.5% quarter-on-quarter, after 0.0% in Q1 2023). Household consumption shrank this quarter (-0.5% after +0.1%) as a result of the fall in goods consumption (-0.7% after +0.1%), particularly in food consumption (-2.8% after -2.5%), while energy consumption slowed significantly (+1.7% after +6.1%). The gross fixed capital formation (GFCF) decreased slightly (-0.1% in Q2 2023 after -0.3% in Q1), dragged down by investment in construction, which fell again (-1.0% after -0.4%). By institutional sector, household GFCF decreased again (-2.3% after -1.5%) while that of NFC rebounded (+0.5% after +0.0%). In total, final domestic demand excluding inventories contributed negatively to GDP growth (-0.2 points after -0.1 points).

Foreign trade bounced back in Q2 2023. Exports rebounded sharply (+2.7% after -1.7% inQ1 2023), due to manufactured products. Imports were also back on the rise (+1.6% after -2.5%), mainly as a result of increased imports of energy. All in all, the contribution of foreign trade to GDP growth remained positive for the third consecutive quarter (+0.3 points after +0.4 points).

Finally, the contribution of inventory changes to GDP growth was positive this quarter (+0.4 points after -0.3 points in Q1 2023).

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

Household gross disposable income (GDI) in current euros increased by 1.6% in Q2 2023 as in the previous quarter. The wage bill received by households slowed down slightly (+1.0% after +1.3%). Average wage per capita decelerated a bit this quarter (+0.9% after +1.1%), while salaried employment rose by 0.2%, as in the previous quarter. Tax levies fell this quarter (-1.3% after +2.3%), particularly personal income tax and levies on capital income. In contrast, social cash benefits increased slightly (+0.3% after +1.0%).

At the same time, the price of household consumption slowed down (+1.4% after +2.0%) becoming slightly less dynamic than their GDI in current euros (+1.6%). Thus, the purchasing power of household GDI rebounded a little in Q2 (+0.2% after -0.4%). Measured per consumption unit to be brought back to an individual level, it was virtually stable(+0.1% after -0.6%).

As household consumption expenditure in volume terms decreased despite a slight increase in purchasing power, the household savings rate increased this quarter (18.8% after 18.2% in Q1 2023). It was almost 4 points higher than its 2019 average level.

Total hours worked slowed down a bit (+0.4% in Q2 2023 after +0.6%). Total employment rose by 0.3%, as in the previous quarter, while the number of hours worked per job increased by 0.2% (after +0.3%), due to a fall in the number of strike days and a slight decrease in partial unemployment.

In Q2 2023, the margin rate of non-financial corporations (NFC) rose by 1.5 points, to 33.2% after 31.7%. This rise in the margin rate was essentially due to a clear improvement in the terms of trade, linked to the fall in the price of energy imports. The margin rate increased in the energy sector in particular, as the fall in import prices was not being fully transmitted this quarter to the prices of energy sold to companies and households.

In addition, the rebound in productivity per capita and the fall in real wages also contributed to the increase in the margin rate.

In Q2 2023, the general government borrowing requirement decreased a bit(-0.1 points of GDP). It stood at 4.6% of GDP, after 4.7% in Q1 2023. Public spending was almost unchanged (+0.1% after -0.2%), as well as public revenue (+0.1% after +1.7%). On the expenditure side, the rise in operating expenses and social benefits was offset by a fall in subsidies. On the revenue side, the fall in taxes on products was offset by increases in social contributions and taxes on production.

GDP growth for Q2 2023 is confirmed at +0.5%, as in the first estimate, but with altered contributions to growth. GFCF and household consumption have 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). Imports have been revised upwards significantly, while exports have remained virtually unchanged, taking the contribution of foreign trade to +0.3 points (versus +0.7 points in the first estimate). All these revisions are offset by the revised contribution of inventory variations, leaving GDP growth unchanged.

As part of the reporting of the general government debt and deficit to the European Union, the annual accounts are updated each year at the end of August to take into account the latest data from the social security funds and revisions that may affect the general government account. The annual public finance tables have thus been updated.