France EUR

France GDP Growth Rate YoY 2nd Est

Impact:
High
Source: INSEE, France

Latest Release:

Date:
Big Surprise:
0.2%
| EUR
Actual:
1%
Forecast: 0.8%
Previous/Revision:
1.2%
Period: Q1
What Does It Measure?
The France GDP Growth Rate YoY (Year-over-Year) measures the change in the value of all goods and services produced in France compared to the same quarter from the previous year. It primarily assesses overall economic performance and health by focusing on production, consumption, and investment levels within the country.
Frequency
This indicator is released quarterly, typically as a preliminary estimate followed by final figures, with the data usually published about one month after the end of the quarter.
Why Do Traders Care?
Traders closely monitor the GDP growth rate because it provides crucial insights into the health of the French economy, impacting financial markets significantly. Stronger-than-expected GDP growth can boost investor confidence, driving up the euro and influencing asset prices, while weaker growth may lead to bearish sentiment in equities and currency markets.
What Is It Derived From?
The GDP Growth Rate is derived from comprehensive national accounts data, which includes information collected from various sectors of the economy such as agriculture, manufacturing, and services. The calculation involves aggregating gross value added at constant prices, adjusted for inflation, using standard methodologies as prescribed by Eurostat and other economic institutions.
Description
The GDP Growth Rate is typically reported as a Year-over-Year (YoY) figure, reflecting changes over a full calendar year, which helps to account for seasonal variations and provide a clear view of long-term economic trends. This method allows traders to interpret the economy's direction more effectively, as it smooths out short-term fluctuations that may occur from month to month or quarter to quarter.
Additional Notes
The GDP Growth Rate serves as a coincident economic indicator, offering immediate insight into the economy's current state and often correlates with other economic reports, such as investment levels and consumer spending. It is crucial in establishing broader economic trends within the Eurozone and can influence policy decisions by the European Central Bank.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for Euro, Bullish for Stocks. Lower than expected: Bearish for Euro, Bearish for Stocks. The tone: Signaling higher interest rates or inflation concerns is usually good for the Euro but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
May 30, 2017
1%
 0.8%
1.2%
0.2%
Feb 28, 2017
1.1%
 1.1%
1%
Nov 29, 2016
1.1%
 1.1%
1.3%
Aug 26, 2016
1.4%
 1.4%
1.4%
May 30, 2016
1.3%
 1.3%
1.4%