French economy grows 0.5% in Q2

Household consumption up 0.3% after 1.2% fall in Q1, official data shows

By Aysu Bicer

ANKARA (AA) - The French economy grew 0.5% in the second quarter, recovering from a 0.2% decline in the first quarter, with positive contributions coming from consumption and exports, official data showed on Wednesday.

The impact of easing pandemic measures was seen as household consumption rebounded 0.3%, after a 1.2% fall in the first quarter, the French statistics agency Insee said.

Foreign trade slowed for the second quarter in a row. Exports grew 0.9 percent after rising 1.8%, while imports remained flat after a 1.9% increase.

"Thus, the contribution of foreign trade to GDP growth was positive this quarter," according to Insee.

The contribution of inventory changes to gross domestic product growth was slightly positive this quarter (+0.1 point after +0.4 point in the first quarter).

Meanwhile, households’ purchasing power diminished again (minus 1.1% vs minus 1.6% in the first quarter).

The savings rate fell sharply at 15.5%, after 16.7% in the first quarter.

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