France's GDP bounces back in Q2 after negative Q1 owing to foreign trade

Following the stagnation of the first quarter of 2022 (Q1), France's gross domestic product (GDP) recovered by 0.5 per cent in the second quarter (Q2), the National Institute of Statistics and Economic Studies (INSEE) announced.

According to the Institute, foreign trade contributed greatly to the recovery of the GDP by 0.4 points, due to an 0.8 per cent increase in exports, although imports decreased by 0.6 per cent, reports Xinhua news agency.

Household consumption decreased for the second quarter in a row, by 0.2 per cent.

However, consumption of services recovered significantly, particularly accommodation, food, and transport services.

"We believe in the possibility of improving French growth through reforms," Minister of Economy and Finances, Bruno Le Maire, said during the Council of Ministers on Friday.

The Minister said he expected France's GDP to grow by 1.4 per cent in 2023, and by 1.8 per cent by 2027.

France's GDP decreased by 0.2 per cent in Q1 of 2022, due to a decrease in household consumption, particularly of transport equipment, other manufactured goods, and accommodation services and restaurants.

--IANS

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