PARIS (Reuters) -The French economy grew 0.3% in the second quarter, beating forecasts, as a rebound in household spending boosted the euro zone's second-biggest economy, according to official data
French Economy Surprises with 0.3% Growth in Q2, Outpacing Predictions
Overview of French Economic Growth
By Sudip Kar-Gupta
Analysts' Forecasts and Actual Growth
PARIS (Reuters) -The French economy grew 0.3% in the second quarter, beating forecasts, as a rebound in household spending boosted the euro zone's second-biggest economy, according to official data published on Wednesday.
Government's Fiscal Strategy
Analysts polled by Reuters had forecast 0.1% growth for the preliminary Q2 GDP. The growth of 0.3% also showed an improvement from France's Q1 GDP growth of 0.1%.
Reactions from Finance Officials
France is facing relatively sluggish economic growth and pressures from its high deficit.
Prime Minister Francois Bayrou wants to reduce the budget deficit from 5.4% of GDP this year to 4.6% in 2026, ultimately targeting the EU's 3% fiscal deficit limit by 2029.
Finance Minister Eric Lombard told RTL Radio that the preliminary Q2 GDP growth figures were nevertheless "good news".
He added they also showed that the French economy was faring relatively well given the pressures from the framework trade tariffs deal between the European Union and the United States.
"This 0.3 percent shows we are resisting relatively well, given the situation," said Lombard.
(Reporting by Sudip Kar-Gupta; Editing by Michael Perry and Andrew Heavens)
