The French economy expanded 0.1% in the second quarter this year compared with the first, the national statistics institute INSEE said today, citing seasonally corrected data. The growth figure is consistent with an initial estimate made by INSEE a week ago.
The agency maintained its estimate of 0.4% growth in gross domestic product for the first three months of the year.
The government in June lowered its projection for all of 2005 to 'a ceiling' of 2% from a previously forecast 2-2.5%. But following INSEE's report last Friday analysts warned that France would have trouble meeting its official target. The French economy grew 2.1% in 2004.
Over the second quarter this year, household spending fell 0.3% after rising 0.8% in the first three months. But the value of exports picked up, gaining 1% after a decline of 0.2% in the first quarter. Imports rose 1.3% from 0.7% in the January-March period.
