France’s preliminary Q2 GDP rose 0.5%, beating forecasts
2022.07.29 10:58
Workers are seen at a building construction site, with a crane in the background, in Nantes, France, June 20, 2022. REUTERS/Stephane Mahe
PARIS (Reuters) – France’s preliminary gross domestic product (GDP) grew by 0.5% during the second quarter, beating forecasts and offering an element of respite for the euro zone’s second-biggest economy, which is facing headwinds from rising inflation.
The preliminary second quarter GDP figures, released by France’s INSEE statistics body, beat forecasts in a Reuters poll which had predicted 0.2% growth for the quarter.
The French economy got a boost from exports, added INSEE, although analysts said near-term pressures remained in terms of inflation. Data on Friday showed that preliminary inflation for July stood at 6.8%.
“Growth has been supported by increased exports, however, the underlying picture is less positive,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.
“Household consumption fell in the quarter, likely a result of increased fiscal prudence, while government spending also came off the boil. The overall data set is of course a relief but this has done little to completely erode recessionary fears,” she added.
