French Economy Surpasses Expectations with 0.3% Growth
The French economy grew by 0.3% in Q2, beating forecasts and showing improvement from Q1. Despite facing economic pressures and high deficits, Finance Minister Eric Lombard expressed optimism about the results. The government aims to reduce the budget deficit, targeting the EU's 3% limit by 2029.
The French economy experienced a positive turn in the second quarter with a growth rate of 0.3%, exceeding analysts' predictions and showing resilience amid continued challenges. Official data released on Wednesday highlighted stronger household spending as a key factor driving the euro zone's second-largest economy upward.
Despite the upbeat figures, France grapples with sluggish broader economic growth and significant budget deficits. Prime Minister Francois Bayrou aims to decrease the deficit to 4.6% of GDP by 2026 and meet the EU's fiscal deficit limit of 3% by 2029.
Finance Minister Eric Lombard expressed satisfaction with the Q2 results in an interview on RTL Radio, noting they reflect France's ability to withstand external trade pressures, particularly those emerging from an EU-U.S. trade tariffs agreement.
(With inputs from agencies.)
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