France’s economy grew by 0.3% in the second quarter, according to final data published by statistics office INSEE on Friday. The reading confirmed the preliminary estimate and showed modest momentum for the euro zone’s second-largest economy.
The result was in line with forecasts from a Reuters poll of 21 economists, which also predicted 0.3% growth. Exports increased by 0.5% after falling 1.2% in the first quarter, driven largely by stronger pharmaceutical shipments.
Household consumption, a key driver of French growth, stabilized after recent weakness. Spending was flat at 0.0% compared with a 0.3% decline in the previous quarter. Higher demand for food and services helped offset a sharp 2.4% drop in energy spending, which had risen 0.8% in the first quarter.
INSEE expects French quarterly growth to remain modest at 0.2% through the rest of the year. The country continues to face challenges, including slow economic expansion and a large budget deficit.
Prime Minister Francois Bayrou has pledged to bring the deficit down from 5.4% of GDP in 2025 to 4.6% by 2026, with a long-term goal of meeting the EU’s 3% fiscal deficit limit by 2029. His budget-reduction plans will face a critical test in a September 8 confidence vote.
