France's Unexpected Economic Surge: A 0.3% Growth in Q2
France surprised analysts with a 0.3% GDP growth in Q2, thanks to a boost in household spending. Prime Minister Francois Bayrou aims to cut the budget deficit, setting targets for a gradual reduction by 2029.
- Country:
- France
The French economy has defied expectations with a notable 0.3% growth in the second quarter, surpassing Reuters analysts' forecasts of 0.1% growth. Household spending played a key role in this economic upturn, reinforcing the strength of the euro zone's second-largest economy.
Despite this encouraging development, France grapples with slow economic expansion and significant fiscal challenges. Prime Minister Francois Bayrou is focusing on fiscal discipline, with plans to reduce the budget deficit from the current 5.4% of GDP to 4.6% by 2026, gradually aiming for the EU's standard 3% fiscal deficit limit by 2029.
As France navigates through these financial pressures, the government remains committed to implementing strategic measures to sustain economic growth while achieving long-term fiscal stability.
(With inputs from agencies.)
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