French Economy Outperforms Expectations with Q2 Growth
The French economy grew by 0.3% in Q2, surpassing forecasts and showing an improvement from Q1. Prime Minister Francois Bayrou aims to reduce the deficit to reach the EU's 3% limit by 2029. Finance Minister Eric Lombard views the growth as positive, despite pressures from EU-U.S. trade tariffs.
The French economy impressed in the second quarter with a 0.3% growth, outstripping analysts' predictions and outshining its first-quarter performance. Released on Wednesday, official data reveals a marked economic rebound driven by increased household spending.
Despite improving figures, France still contends with slow growth and a significant budget deficit. Prime Minister Francois Bayrou is targeting a reduction in the deficit from 5.4% of GDP this year to 4.6% by 2026, working toward the EU's fiscal deficit threshold of 3% by 2029.
Finance Minister Eric Lombard described the figures as encouraging news on RTL Radio, citing the challenge of the EU-U.S. tariff deal. Analysts like Sandeep Rao from Leverage Shares caution about future pressures on France's plan to curb government spending, especially with commitments to increased EU military expenditures.
(With inputs from agencies.)
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