The French economy grew an unexpected 0.14 per cent in the third quarter, saving France from following Germany into recession, French Economy Minister Christine Lagarde said today.
Statistics office INSEE is due to release the third quarter data at 7.50am this morning and a Reuters poll of economists had forecast a 0.1 per cent contraction following a 0.3 per cent contraction in the second quarter.
"France is +0.14 per cent," Ms Lagarde told RTL radio, when asked about the third quarter figure. "It's good news and shows that France is not technically in recession."
Ms Lagarde said consumption had held up well in the third quarter, while company investments rose 0.3 per cent, enabling the euro zone's second largest economy to post overall positive growth in the three months to the end of September.
"In the third quarter, exports and imports were roughly balanced, it's not there that we have growth or a decline," she said. "Consumption held up, in fact a bit better than in the second quarter, on the other hand company investments were much better than in the second quarter."
Figures released yesterday Germany's economy contracted 0.5 per cent contraction in the third quarter after a 0.4 per cent fall in the second quarter, putting Europe's largest economy in recession for the first time in five years.
A recession is often defined as two consecutive quarters of contraction.
"The (French) figure is surprising because everybody was expecting a negative figure and everybody was preparing to debate on a recession," Ms Lagarde said.
Reuters