Informations Rapides · 28 February 2025 · n° 55

In Q4 2024, GDP declined slightly (-0.1%) and household purchasing power stagnated (+0.0% per consumption unit) Quarterly national accounts - detailed figures - fourth quarter 2024

In Q4 2024, GDP growth in volume terms was confirmed at -0.1%.

The purchasing power of household gross disposable income (GDI) per consumption unit slowed down and stabilized (after +0.9%). The household savings rate declined slightly this quarter: it stood at 18.4% of the GDI, after 18.5% in the previous quarter.

The margin rate of non-financial companies (NFCs) fell slightly in Q4 2024 to 32.2% of their value added, after 32.4% in the previous quarter.

In Q4 2024, GDP in volume terms* fell back slightly: it dropped by 0.1%, after +0.4% in the third quarter, partly due to the backlash of the Paris Olympic and Paralympic Games which fuelled the economic growth in the previous quarter. Household consumption slowed slightly in the fourth quarter (+0.3% after +0.6%). Consumption of services decreased (-0.1% after +0.8%), whereas consumption of goods remained on an upward trend (+0.2% after +0.4%). The gross fixed capital formation (GFCF) continued to decline in Q4 2024 (-0.1% after -0.7%), mainly due to a further fall in GFCF for construction (-1.0% after -0.1%), partly offset by a rebound in investment in transport equipment (+2.3% after -8.6%). Overall, final domestic demand excluding inventories contributed positively to GDP growth this quarter (+0,2 points after +0,3 points).

Exports rebounded in Q4 2024 (+0.4% after -0.8%), driven by the rise in exports of other industrial products, especially chemicals. Meanwhile, imports were also back on the rise (+0.4% after -0.3%), in particular with an increase of energy imports. Overall, the contribution of foreign trade to GDP growth was null in Q4 2024 (after -0.2 points).

Finally, the contribution of inventory changes to GDP growth was negative this quarter (-0.3 points after +0.3 points in the third quarter of 2024).

Household gross disposable income (GDI) in current euros rose slightly in Q4 2024: it increased by 0.1% after +1.1% in the previous quarter. The wage bill received by households continued to rise (+0.4% after +0.5%). Payroll employment was almost stable (-0.1%), after being stable in the previous quarter, while the average wage per capita grew at the same pace as last quarter (+0.5% after +0.5%). Social benefits were buoyant this quarter (+1.0% after +1.3%), in connection with the revaluation of supplementary pensions, while income tax paid by households rebounded (+0.5% after -2.5%).

At the same time, the price of household consumption remained stable (after +0.1%). Thus, the purchasing power of household GDI decelerated this quarter: it rose by 0.2% after 1.0% in the third quarter. Measured per consumption unit, in order to bring it down to an individual level, it was stable (after +0,9%). Over the full year 2024, the purchasing power accelerated: +2.5% after +0.9% in 2023, which corresponds to +1.9% after +0.3% measured per consumption unit.

Household consumption in volume terms grew more than their purchasing power, thus the household savings rate declined slightly this quarter: it stood at 18.4% after 18.5% in Q3 2024. On average over 2024, the savings rate stood at 18.2%. It increased by 1.3 points compared with 2023 and has still standing well above its level before the health crisis (+3.6 points compared with 2019).

Total hours worked declined in Q4 2024 (-0.2% after +0.1% in Q3 2024). Total employment remained stable (after +0.1%), whereas the number of hours worked per job decreased slightly (-0.1% after a stability).

In the fourth quarter of 2024, the profit margin of non-financial companies (NFCs) stood at 32.2% after 32.4% in the previous quarter. This slight decline was due to an increase in real wages, partly offset by a consumer price that kept stable, contrary to the value added price, which was on the rise.

On average over 2024, the profit margin of non-financial companies (NFCs) decreased: it stood at 32.1% after 32.9% in 2023.

GDP growth for the fourth quarter of 2024 was confirmed at -0.1% (after rounding). The contribution of final domestic demand excluding inventories to GDP growth was slightly revised downwards (after rounding) compared to the first estimate, at +0.2 points. Furthermore, exports were revised downwards while imports showed little revision, leading to an upwards revision of the contribution of foreign trade to GDP growth (0.0 point, compared to -0.2 points at the first estimate). At least, in compensation, the contribution of inventory changes was revised downwards: -0.3 points compared to -0.1 points at the first estimate.

Since the previous publication (Q4 first estimate), new information have been included, in particular December turnover indices. The seasonal adjustment (SA) and working day adjustment (WDA) coefficients have also been updated.