French Economy Rebounds With 0.2% Growth in Second Quarter

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessFrench Economy Rebounds With 0.2% Growth in Second QuarterFrance’s economy returned to growth in the second quarter, avoiding a recession as domestic demand picked up and exports rebounded.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.4)17yhhw930t1x(ao]g[6zq2_media_dl_2.png S&P Global(Bloomberg) — France’s economy returned to growth in the second quarter, avoiding a recession as domestic demand picked up and exports rebounded.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountGross domestic product rose 0.2% after falling 0.1% in the first three months of 2026, statistics agency Insee said Thursday. That’s in line with the median estimate of analysts surveyed by Bloomberg.The rebound in the euro zone’s second-biggest economy augurs well for the region as a whole on a day where Germany, Italy and Spain are all also expected to report growth, defying the disruption and uncertainty wrought by the conflict in the Middle East.While surges in oil prices have driven up inflation, weighed on household budgets and curbed investment, Europe has largely weathered the fallout from Donald Trump’s war with Iran. The 20-nation currency bloc avoided a contraction in the first quarter and is expected to reveal expansion of 0.2% in the second at 11 a.m. Paris time.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRecent indicators point to further improvement, even as fighting clouds the peace process between Washington and Tehran. Businesses proved more optimistic than anticipated in Germany and France in July.The full effect of the initial energy shock “has yet to play out,” however, according to the European Central Bank. While it held interest rates steady this month, it warned of upside risks to inflation and downside risks to growth. Some officials are inclined to add to June’s hike and investors are anticipating another move in September.Data due Friday are set to show consumer-price gains quickened slightly in July from June’s 2.8%. Slovak central-bank Governor Peter Kazimir said this week that the ECB will have to raise borrowing costs at least once more to ensure inflation risks don’t spin out of control.In France, inflation and economic frailty have forced the government to cut this year’s forecasts and admit that the goal to narrow a hefty fiscal deficit has become “difficult.”Firms and households face more uncertainty in the months ahead as a fractured parliament reconvenes to negotiate a budget to tackle the country’s ballooning debt. The process, which has toppled governments in recent years, is now even more precarious as parties maneuver before presidential elections next spring. Thursday’s GDP reading showed consumer spending rose 0.2% after a 0.3% fall in the first three months of the year. Still, investment shrank for a second consecutive quarter with a 0.3% decline. Trade made a positive contribution to GDP as the rebound in exports outpaced growth in imports. A separate monthly measure of French consumer spending showed a 0.4% increase in June. That contrasts with a 0.1% contraction forecast by economists.—With assistance from Joel Rinneby, Harumi Ichikura, Giovanna Coi, Mark Schroers and Fabrice Obrist.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.