INSEE published on Friday a figure well below the 0.3% expected. The French have consumed less and less invested companies. However, Finance Minister Michel Sapin ensures that zero growth “reinforces our goal” of 1% growth in 2015.
After a rebound 0.7% growth in the first quarter, France saw its growth drop to 0%, according to a first estimate of INSEE. A figure well below expectations: the most pessimistic forecast a growth of 0.3%. Yet zero growth “reinforces our goal” of a 1% growth in 2015, ensures the Finance Minister Michel Sapin. “After a very dynamic first quarter, the level of activity continues. A mid-year, the growth overhang is 0.8%, which confirms our target of 1% for 2015, said Finance Minister Michel Sapin. The acceleration in exports and a recovery in investment are proof that our economic policy is bearing fruit and that we were right to focus on business support. We must stay the course, “he added in a statement sent to Reuters.
The reason: the sharp slowdown in consumer spending in the second quarter, 0.9% in the first quarter to + 0.1% between April and June. Proof that after a strong start to the year, the French economy is unable to keep the same pace. Same-side business investment has also slowed 0.2% after + 0.6% in the first quarter. Good point however for foreign trade contributed positively to GDP growth (0.3 points after -0.3), weighed down by changes in inventories (-0.4 point).
Around 8:00, the German Statistical Office will release the growth rate of the country in the second quarter. 11:00 And it was the turn of the euro area.
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