The French economy is on course for growth of at least 2.2% this year, according to the latest official data.
Today's data offered relief to the French government, harassed over budget deficits, and will boost the outlook for the euro zone. It coincided with firm growth figures from Germany and a broadly optimistic assessment for the eurozone from the European Central Bank.
The French economy grew by 0.8% in the second quarter from the first-quarter figure signalling that growth this year will be 2.2% on performance so far, the official statistics institute INSEE said on the basis of preliminary data.
INSEE said that it expected the final figure for the second quarter to be 0.8-0.9% after growth of 0.8% in the first quarter. The figure for the quarter meant that growth for the whole year, barring an unforeseen slowdown, would be 2.2%.
Economy and Finance Minister Nicolas Sarkozy had said at the end of July that French growth for the whole year might reach 2.5%. Many economists also expect to see growth of 2.5% this year after a dip to 0.5% growth last year, the worst performance since 1993.
But although industrial output and the confidence of business leaders in small and medium-sized companies are showing signs of recovery, uncertainty hangs over household consumption, exports and company investment.
Economists say that although domestic consumption should continue to underpin recovery, households are worried about unemployment which, INSEE says, is likely to remain at about 10% of the workforce.
The surge of the price of oil is also a factor of uncertainty. At the end of June INSEE calculated that if the price of a barrel of oil remained for any length of time above €40, French growth would be reduced by 0.12 percentage points, and a price of €50 would reduce growth by 0.24 points.
