France Expects Stronger Q2 Growth

The French economy recorded a 0.3% growth on a sequential basis in the first quarter of this year, according to the first estimate of the national statistics bureau INSEE. Even if this performance is slightly below the level indicated by economic surveys, it is not surprising, Econotimes reported. It affirms the downside risk to the projection of 0.4% quarter-on-quarter, as hinted by the poor monthly economic figures for January and February, noted BNP Paribas in a research report. Prospects for the second quarter economic growth are expected to be similar or slightly stronger. The first available indicators are rather upbeat. Business sentiment surveys are high and are trending upwards, which augurs well for near-term growth prospects. The surveys imply that the second quarter growth rate might be at least as robust as in the first quarter. Household consumption and exports have rebounded, a payback in corporate investment while household investment might continue to recover at a rapid pace. According to INSEE, the French economy is expected to expand 0.5% in the second quarter of this year.