rki.news | Sources: Xinhua

PARIS, July 30: France’s economy grew by 0.2 percent quarter-on-quarter in the second quarter, recovering from a 0.1 percent contraction in the previous quarter, according to preliminary data released Thursday by the National Institute of Statistics and Economic Studies.

The rebound was supported by renewed growth in domestic demand excluding inventories. Household consumption increased by 0.2 percent after declining 0.3 percent in the first quarter, while government consumption rose by 0.4 percent following a 0.3 percent increase.

Domestic demand excluding inventories contributed 0.1 percentage points to overall GDP growth, compared with a negative contribution of 0.2 percentage points in the previous quarter.

Despite the quarterly improvement, France has revised downward its 2026 economic growth outlook. The government lowered its forecast to 0.7 percent from 0.9 percent on July 7, citing economic challenges linked to tensions in the Middle East.

The forecast had already been reduced in mid-April from 1.0 percent to 0.9 percent, reflecting concerns over global uncertainties and economic pressures.