In the second quarter of 2024, GDP grew (+0.2%) and household purchasing power increased (+0.2% per consumption unit) – Quick Information – 213

In the second quarter of 2024, the total GDP growth rate was 0.2%.

The purchasing power of households’ gross disposable income (GDI) per consumption unit slowed down (+0.2% vs. +0.4% in the previous quarter). However, as consumption remained largely stable, the household savings rate continued to rise: it stood at 17.9% of GDI, compared to 17.6% in the previous quarter.

In the second quarter of 2024, the profit margins of non-financial companies (NFCs) fell sharply again: their profit margin on value added was 30.8%, compared to 31.7% in the previous quarter.

General government borrowing demand fell slightly, by 0.1 percentage point of GDP.

In the second quarter of 2024, GDP* in volume terms grew modestly (quarterly change of +0.2% vs. +0.3%). Household consumption recovered slightly (+0.1% vs. -0.1%), supported by an increase in the consumption of services (+0.5% vs. +0.3%). Goods consumption remained stable (+0.0% vs. -0.1%), with a decline in food consumption (-1.6% vs. -0.1%) offset by an increase in the consumption of gas and electricity (+3.0% vs. +0.2%). In the second quarter of 2024, gross fixed capital formation (GFCF) fell again (-0.4% vs. -0.5%), mainly due to a decline in construction (-0.9% vs. -1.0%) and capital goods (-2.7% vs. -1.0%). Government spending slowed down (+0.4% vs. +0.6%). Overall, final domestic demand after deducting inventories contributed zero to GDP growth this quarter, the same as in the previous quarter.

Exports continued to grow modestly in the second quarter of 2024 (+0.4% vs. +0.6%): mainly driven by strong shipments of transport equipment. On the import side, there was a slight recovery in the quarter (+0.1% vs. -0.4%), thanks to imports of energy, water, waste and food industrial products. Overall, the contribution of foreign trade to GDP growth was positive in the second quarter of 2024 (+0.1 percentage point vs. +0.3 percentage point).

Finally, the contribution of inventory changes to GDP growth this quarter was zero, just as it was in the previous quarter.

* Quantities are measured at previous year prices, linked and adjusted for seasonal variations and working day effects (SA-WDA).

In the second quarter of 2024, the gross disposable income (GDI) of households in current euros slowed down: it grew by 0.6% compared to +1.6% in the previous quarter. Social benefits slowed down significantly after the revaluation of basic pensions in the previous quarter (+0.8% compared to +2.8%). On the other hand, the wage bills received by households accelerated (+0.7% compared to +0.4%): salaried employment grew by 0.1% as in the previous quarter, while wages grew by 0.6% compared to +0.3% previously. Tax payments by households slowed down due to income tax (+0.7% compared to +2.3%).

Meanwhile, household consumer prices rose by 0.2% (previously +1.0%). As a result, household GDI purchasing power slowed down in the quarter, rising by 0.3% compared to +0.5% in the first quarter of 2024. Measured in consumption units, in order to reduce it to the individual level, it rose by 0.2% compared to +0.4% in the first quarter of 2024.

The household savings rate rose again this quarter, as household consumption grew less than its purchasing power; the household savings rate fell to 17.9% this quarter from 17.6% in the first quarter of 2024.

Total hours worked remained virtually stable in the second quarter of 2024 (+0.1% vs. 0.0% in the previous quarter). Total employment continued to increase (+0.1% vs. +0.1% in the previous quarter), while hours worked per job declined slightly (-0.1% vs. -0.1% in the previous quarter).

In the second quarter of 2024, the profit margin of non-financial corporations (NFC) fell sharply: it reached 30.8%, down 0.8 percentage points from 31.7% in the previous quarter. It is now at the average level of 2019. This decline is mainly due to the decline in value-added prices, especially in the energy sector. The increase in real wages also contributed to the decline in profit margins.

The government’s general borrowing requirements fell by 0.1 percentage points of GDP in the second quarter of 2024. It stood at 5.5% of GDP, compared with 5.6% in the first quarter of 2024. Public revenues increased by €2.9 billion (+0.8%), helped by increases in product taxes and social contributions. Public spending also increased by €2.4 billion (+0.6%), but slightly less than revenues.

GDP growth for the second quarter of 2024 was revised down by 0.1 percentage point to +0.2%, compared with an initial reading of +0.3%. GFCF was revised down due to the integration of the turnover index for the services sector in June, while household consumption was revised slightly upward. The contribution of final domestic demand excluding inventories to growth was revised down by 0.1 percentage point to 0.0 percentage point (compared to an initial reading of +0.1 percentage point).

On the other hand, imports were revised up and exports were revised down, resulting in a downward revision of 0.1 percentage point in the contribution of foreign trade to quarterly GDP growth (originally +0.1 percentage point, compared with the initial estimate of +0.2 percentage point). Finally, the contribution of inventory changes was not revised this quarter.

Since our last release, we have incorporated new information and updated the Seasonal Adjustment (SA) and Working Day Adjustment (WDA) factors.

As part of reporting on the government’s general debt and deficit to the EU, the annual accounts are updated every year at the end of August to take into account the latest data on social security funds and revisions that may affect the government’s general accounts. 2023 Public Fiscal Year Table So it has been updated.