By Maria Martinez 
 

The French economy grew in the fourth quarter, although at a slower pace than in the previous quarter because of a surge in coronavirus infections, an intensification of supply-chain problems and rising inflation.

The eurozone's second-largest economy expanded by 0.7%, following 3.1% growth in the previous quarter, French statistics agency Insee said Friday in a first estimate for the period. Economists polled by The Wall Street Journal had forecast the economy would grow by 0.5% on quarter.

Domestic demand contributed positively to gross domestic product growth, but at a much slower pace than in the previous quarter, Insee said. Gross fixed capital formation grew 0.5% and household consumption increased 0.4% in the fourth quarter compared with the previous quarter.

Imports grew 3.6%, more strongly than exports, which posted a 3.2% expansion. Overall, the contribution of foreign trade to GDP growth was slightly negative, Insee said.

The French economy reached its pre-pandemic level of output in the third quarter, and in the fourth quarter output was 0.9% above its level in the fourth quarter of 2019.

France's GDP grew by an average of 7.0% in 2021, compared with the previous year in which the economy posted a 8.0% contraction.

Spain, Germany and Belgium are also scheduled to release figures on GDP on Friday.

Write to Maria Martinez at maria.martinez@wsj.com

(END) Dow Jones Newswires

January 28, 2022 02:13 ET (07:13 GMT)

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