The french economic activity got stuck in the first quarter of 2022with zero growth (0%), as a result of the decline in household consumption in a context of inflation and war in ukraineaccording to a first official estimate published this Friday.
On your side, the inflation it continued to accelerate in April, to 4.8% year-on-year, after reaching 3.6% in February and 4.5% in March, according to data from the French national statistics institute INSEE.
The growth figures are much lower than the projections, since the INSEE foresaw a small advance of 0.25% of the GDP.
France’s economic activity is thus experiencing a clear stagnation after the 0.8% growth registered in the fourth quarter of 2021 (revised upward by 0.1 percentage point) and the strong rebound from last year as a whole (7%).
Traditional engine of French growth, household consumption fell “clearly” in the first quarter, indicates the INSSE, contrary to the projections of economists, who expected it to still resist at the beginning of the year.
the very strong Omicron wave of Covid-19 and the rise in prices accentuated by the start of the war in Ukraine at the end of February forced households to reduce their expenses, especially in the restaurant and accommodation sectors and textile clothing.
Inflation reached levels not seen since the mid-1980s, particularly driven by rising energy prices, which rose 26.6% year-on-year in April, after +26.6% in March.