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French GDP stagnates in Q2, misses expectations
[PARIS] The French economy slowed to a standstill in the second quarter, missing expectations of 0.2 per cent growth, data published by the INSEE national statistics agency on Friday showed.
The euro zone's second-largest economy grew by 0.7 per cent in the first quarter, INSEE said, up from a previous estimate of 0.6 per cent.
Inventories weighed negatively on the economy in the second quarter and consumer spending growth slowed sharply from a 0.9 per cent increase in the first quarter to an uptick of 0.1 per cent in the second quarter.
Exports were a bright spot, up 1.7 per cent in the second quarter after growing by 1.3 per cent in the three months to June. Corporate investment grew by 0.2 per cent in the second quarter.
French Finance Minister Michel Sapin said stronger exports and investments made the government confident in its estimate of 1 per cent annual GDP growth for the year.