French National Accounts 2023 – Insee Première

2023, like 2022, is also a year of high inflation, especially in household consumption. French economic growth is modest: GDP (in volume terms) grew by 0.9%, while in 2022 it grew by 2.6%, itself due to a strong overhang effect at the end of 2021 (2.4%), while growth has been weak throughout 2022.

The purchasing power of total disposable income of households increased by 0.8%, driven mainly by labor income and, to a lesser extent, by social benefits, especially pensions and property income. Profit margins of non-financial companies remain above their pre-health crisis levels. Persistent inflation has led to a sharp rise in interest rates, squeezing banks’ interest margins and, therefore, reducing the added value of the financial sector. The country’s borrowing demand fell by 0.1 percentage point of GDP (or 48.2 billion euros) in 2023, as the growth in the value of GDP was greater than the growth in the country’s borrowing demand.