French economy grows 0.5%

The French economy has grown 0.5 pct in the first quarter with consumer spending roaring back.

France's economy grew 0.5 per cent in the first quarter.

The result follows the strongest increase in consumer spending since 2004 and beats even the most optimistic forecast, the INSEE national statistics agency says.

In a preliminary reading of gross domestic product for the quarter, INSEE said on Friday the two trillion euro economy had accelerated from the 0.3 per cent growth posted in the previous three months, as a pick-up in business investment helped offset lower exports and stocks.

A poll of 30 analysts surveyed by Reuters had forecast 0.4 per cent growth for the euro zone's second-largest economy in the three months to March.

The lowest estimate had been 0.1 per cent and the highest 0.4 per cent.

The data appeared to lend some credence to President Francois Hollande's assertion this month on prime-time television that "things are going better", coming at the end of a week that saw the number of jobless people drop by the most since the dot com boom.


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Source: AAP


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