French economy takes off considerably in second quarter

The French economy took off in Spring with a growth of 1.1 to 1.2 percent in the second quarter, boosted by household consumption, ensuring a growth of up to 2.5 percent for 2006.

The French national statistics office INSEE announced Friday that the economy had grown by 1.1 to 1.2 percent in the second quarter of this year, following a 0.5-percent growth in the first quarter and only 0.2 percent at the end of 2005.

This means that the French economy is set for growth of at least 1.8 to 1.9 percent this year provided there is no contraction.

French Finance and Economy Minister Thierry Breton enthused "the figures published by INSEE this morning are quite exceptional."

"The French economy is doing better, it's doing well, it's even doing very well," Breton told France Inter radio.

He added that the figures were the best France had achieved for 20 years and that growth was running at an annual rate of 3.0 percent.

"All the trends are at go. This is why unemployment is falling so much in France," said the minister, adding that quarterly growth had exceeded by far the forecasts of 0.6 to 0.7 percent.

Analysts said that the two major drivers of this progress were household consumption and industry. French household consumption in the manufactured products field, boosted by the World Cup, rose by 1.5 percent in the second quarter, while industrial production increased by 0.8 percent.

Some economists said that the rebound of the French economy coincided with some good news from other European countries, representing a good omen for the wider European economy.

Source: Xinhua