France Second Quarter GDP Growth Revised Lower, Contracts 0.1%

French growth suffered a downward revision on Friday, with the new data showing it contracted 0.1%.

The revision showed that both consumers and businesses held back on spending in the second quarter of 2016, AFP reported. Responding to the revision, France's Finance Minister Michel Sapin said that the government still thinks the economy will grow by 1.5% in 2016 and 2017.

The government seeks 1.5% growth to pass it's tax and spending plans. The government said that the GDP growth was also important to help France bring its public deficit back under the limit of 3% of the GDP. The first quarter saw the French economy grew by 0.7%.

Source : QNA