France surprises with solid growth
The French economy surprised analysts with solid growth in the second quarter. According to a preliminary estimate by the national statistics office in Paris, the second-largest economy in the Eurozone grew by 0.3 percent. Only 0.1 percent had been expected. Spain even saw an increase of 0.8 percent in its economy, according to initial figures.
In France, strong exports were the main driver of GDP growth. However, private consumption, the traditional engine of the French economy, continues to lag.
Spain also exceeded expectations, with the Spanish central bank predicting 0.6 percent growth. In addition to strong exports, private consumption also supported the economy. The government in Madrid has raised its growth forecast for the whole year from 2.0 to 2.4 percent this month.
The strong GDP growth in France can be attributed in part to its robust export sector. Despite this, the pace of private consumption remains relatively sluggish.
Throughout Spain, both exports and private consumption have contributed to the remarkable economic growth, leading the Spanish government to revise its annual growth forecast upwards.
