Insee Première · May 2024 · n° 1997

National French account in 2023 GDP slowed but household purchasing power accelerated slightly

As in 2022, 2023 was a year of high inflation, particularly for household consumption. Growth in the French economy was moderate: GDP (in volume terms) increased by 0.9%, following a growth of 2.6% in 2022, itself explained by a strong overhang effect at the end of 2021 (2.4%), whereas growth had been weak throughout 2022.

The purchasing power of households' gross disposable income rose by 0.8%, mainly driven by earned income and, to a lesser extent, by social benefits, particularly retirement pensions and income from property. The profit margin of non-financial companies remained above its level prior to the health crisis. The sharp rise in interest rates resulting from persistent inflation was squeezing banks' interest rate margins, thereby reducing the value added of the financial sector. The nation's borrowing requirement fall by 0.1 point of GDP in 2023 (or 48.2bn euros), as the rise in GDP in value terms was greater than the rise in the nation's borrowing requirement.