French GDP Declines in Q4

FLASH Q4 GDP -1.3% Q/Q SA, -5.0% Y/Y WDA

Q4 HH CONSUMPTION EXPENDITURE -5.4% Q/Q

Q4 GOVT CONSUMPTION EXPENDITURE -0.4% Q/Q

Q4 EXPORTS +4.8% Q/Q; IMPORTS +1.3% Q/Q

• The French economy contracted by 1.3% in Q4 after the record-breaking 18.5% gain in Q3. However Q4 beat market expectations of a bigger drop (median 4.0%).
• Annual GDP fell by 5.0% in Q4 following Q4's improvement to -3.9%.
• Over the year of 2020, GDP declined by 8.3% compared to a growth rate of 1.5% in 2019.
• Q4's decrease was driven by a significant decline of household consumption, down 5.4% q/q amid the renewed strict curfews and containment measures throughout the quarter.
• However, the decline is much smaller than the one seen in Q2 during the first lockdown.
• Government consumption eased 0.4% in Q4 after rebounding by 14.6% in Q3
• Meanwhile, exports decelerated to 4.8% and imports slowed to 1.3% in Q4.