Q2 GDP Update May Confirm Continuous Economic Growth of France

Q2 GDP Update May Confirm Continuous Economic Growth of France

The National Institute of Statistics and Economic Studies will release the French Gross Domestic Product data for the second quarter on July 30, 2024, at 05:30 GMT. If economists and market analysts are correct, the country is most likely to post a quarterly growth rate of 0.2%, like it did last quarter.

The GDP release, which usually measures the market value of final goods and services produced within an economy for a given period, will shed more light on the health and direction in which the French economy is going. Information is collected from a mix of statistical data, forecasting models, and expert judgment in estimating some universal view of economic activity.

If there is indeed GDP growth at the forecasted 0.2%, then it might suggest the French economy is growing slowly, but surely. Such an outcome is likely to buoy investor sentiment and perhaps underpin the euro across the FX spectrum.

At the same time, a miss in the figure may add new dynamics to the economic landscape. A growth rate above expectations may therefore mean more resilience, increasing confidence in the French economy for a possible rally in euro quotes. On the other hand, sluggish GDP growth could fuel fears of underlying economic softness, thus possibly sending the euro lower.

This is something that market participants have been waiting for, since this data may shed light on the future direction of monetary policy from the European Central Bank. The more intensive GDP growth, the higher the probability of maintaining a tight monetary policy from the ECB to tame inflationary pressures. The opposite is in the case of slow growth: it will be grounds for the continuation or tightening of expansive measures to stimulate economic activity.