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French economy grows 0.5 pct in Q2 on export surge

Friday, July 28, 2017 - 01:25

France rides the wave of an export surge with a third straight quarter of strong growth - but is still outdone by Spain. Its latest data shows output expanding by 0.9 per cent between April and June. David Pollard reports.

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Time to chill. Though not perhaps for a French economy getting hotter by the quarter. Three straight quarters of strong growth in fact. The latest showing a rise of half a per cent. (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "It's really good news that France is beginning to grow faster. France, Germany and the others have benefited from increased domestic demand, but also an increase in exports because of course the world economy is recovering more generally and trade is picking up very significantly." French exports surged over three per cent - compared to a rise of just 0.3 per cent in consumer spending .... Spain too seeing growth rise in the second quarter by 0.9 per cent. The data released as euro zone economic sentiment hit its highest survey reading in 10 years. The recovery story getting more compelling .... (SOUNDBITE) (English) CHIEF ECONOMIC ADVISER, CEBR, VICKY PRYCE, SAYING: "France, Germany, the other countries too, are beginning to see and feel some sort of lessening in austerity. The interest rate reductions that we've had in Europe have had a quite significant impact in terms of encouraging lending or the measures of the European Central Bank have also helped." Elsewhere, German inflation has come out higher than expected for July. A one and half per cent rate compared to forecasts for 1.4. Prices heating up - if still too cool for the ECB and its target rate of just under two.

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French economy grows 0.5 pct in Q2 on export surge

Friday, July 28, 2017 - 01:25