French economy grows 0.5% in second quarter – INSEE

PARIS, July 28 (Reuters) – The French economy managed to grow significantly more than expected in the second quarter, preliminary data from the INSEE statistics agency showed on Friday, as exports picked up.

« We see that for the first time, French growth is driven by exports, by corporate investment much more than by household consumption », Finance Minister Bruno Le Maire told RTL radio.

« This shows once more that our production engine is running well and efficiently, » he added.

The euro zone’s second-biggest economy grew 0.5% in the three months through to the end of June after expanding a revised 0.1% in the first quarter, INSEE said in its quarterly GDP report.

A Reuters poll of 29 economists had an average forecast of 0.1% (FRGDPP=ECI) with estimates ranging from 0.3% to minus 0.1%.

Exports growth jumped to 2.6% in the second quarter from a 0.8% contraction in Q1. Imports were up 0.4% from minus 2.0%.

Reporting by Tassilo Hummel; Editing by Dominique Vidalon and Christopher Cushing

Our Standards: The Thomson Reuters Trust Principles.