In the first quarter of 2024, GDP grew (+0.2%) and household purchasing power increased (+0.5% per consumption unit) – Quick Facts – 133

In the first quarter of 2024, total GDP grew modestly (+0.2% after rounding).

The purchasing power of households per unit of gross disposable income (GDI) slowed down (+0.5% vs. +0.8% previously). The household savings rate increased again: in the fourth quarter of 2023, it was 17.6% of GDI vs. 17.2% previously.

In the first quarter of 2024, the profit margin of non-financial companies (NFCs) fell sharply, reaching 32.1% of their value added, compared with 33.3% in the fourth quarter of 2023.

GDP* in volume terms grew modestly in the first quarter of 2024 (quarterly change of +0.2% vs. +0.3%). Household consumption slowed (+0.1% vs. +0.2%), but spending on transport equipment fell (-3.4% vs. +2.8%), especially on new cars. Gross fixed capital formation (GFCF) fell again in the first quarter of 2024 (-0.4% vs. -1.0%), mainly due to declines in construction (-1.3% vs. -1.3%) and capital goods (-1.7% vs. -1.7%). Government spending continued to increase (+0.6% vs. +0.4%). Overall, final domestic demand excluding inventories made a positive contribution to GDP growth in the quarter (+0.1 percentage point vs. 0.0 percentage point).

Exports accelerated slightly in the first quarter of 2024 (+1.2% after +1.0%): export growth was boosted by a rebound in exports of agricultural products, transport equipment and “other manufactured goods”. On the import side, imports rebounded in the quarter (+0.4% after -1.7%), boosted by imports of refined petroleum and transport equipment. Overall, the contribution of foreign trade to GDP growth was positive in the first quarter of 2024 (+0.2 points after +1.0 points).

Finally, the contribution of inventory changes to GDP growth was negative again this quarter (-0.2 percentage points, after -0.7 percentage points in the fourth quarter of 2023).

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

Gross disposable income (GDI) of households in current euros remained dynamic in the first quarter of 2024, increasing by 1.2% compared to 1.3% in the previous quarter. Social benefits increased significantly (+2.5% compared to 1.3% in the previous quarter), and basic pensions were reviewed in January.^{English Stone} January. On the other hand, wage bills received by households slowed down (+0.5% after +1.2%), thanks to a rebound in purchasing power bonuses for civil servants in the previous quarter. Taxes paid by households rebounded (+2.2% after -1.2%), helped by taxes on income and capital gains.

At the same time, household consumer prices rose (+0.6%, previously +0.3%, seasonally and working day adjusted). As a result, household GDI purchasing power slowed down in the quarter, rising 0.6%, previously +1.0% in the fourth quarter of 2023. Measured in consumption units, in order to reduce it to the individual level, it rose 0.5%, previously +0.8%.

The household savings rate rose again this quarter, with household consumption growing less than its purchasing power; rising to 17.6% from 17.2% in the fourth quarter of 2023.

Total hours worked fell in the first quarter of 2024 (-0.1% vs. +0.2% in the previous quarter). Total employment continued to increase (+0.1% vs. +0.1% in the previous quarter), but hours worked per job fell (-0.2% vs. +0.1% in the previous quarter), mainly due to a rebound in sick leave.

In the first quarter of 2024, the profit margin of non-financial companies (NFC) fell sharply to 32.1%, compared to 33.3% in the previous quarter. This decline mainly concerns the manufacturing sector. In the energy sector, profit margins remained stable and at a high level. The decline reflects the fall in value-added prices, as well as the decline in subsidies (especially those under the energy bill payment program). On the other hand, the production taxes paid by companies fell, partly due to the increase in property taxes in the previous quarter and partly due to a further decline in the corporate value-added tax (CVAE).

In the first quarter of 2024, the government’s general borrowing needs fell by 0.3 percentage points of GDP. It amounted to 5.6% of GDP, compared with 5.9% in the fourth quarter of 2023. Public revenues increased by €4 billion, helped by a rebound in corporate income tax revenues and product taxes, especially energy taxes (gas and electricity). Public spending also increased (+€1.9 billion), but at a lower rate than revenues. They were boosted by social benefits (+€3.4 billion), with the revaluation of basic pensions in January, but this increase was offset by a fall in electricity price subsidies (-€3.2 billion).

GDP growth for the first quarter of 2024 has not been revised after rounding. Both household consumption and GFCF have been revised down significantly, mainly due to the consolidation of the services turnover index in March: Overall, the contribution of final domestic demand to growth has been revised down by 0.3 percentage points (after rounding) compared to the initial estimate, to +0.1 percentage point. On the other hand, the upward revision of imports was smaller than that of exports, resulting in an upward revision of the contribution of external trade to quarterly GDP growth (+0.2 percentage points, compared to 0.0 percentage points in the initial estimate). Finally, the contribution of inventory changes in the first quarter has not been revised.

Since the last publication, the quarterly accounts have been rebalanced to annual accounts (2021 definitive accounts, 2022 semi-definitive accounts and 2023 provisional accounts, and since 1949 the full set of accounts based on 2020). In addition, the estimation model for the quarterly accounts has been revised, as is done every year when detailed first quarter results are published. As a result, the quarterly overview for 2023 has been revised, especially for the fourth quarter, which showed an improvement driven by service exports.