The French economy grew by 0.3 per cent in the third quarter of 2009, lifted by strong exports while job losses slowed, data on Friday showed, adding to hopes of a more sustained recovery next year.
National statistics office Insee said gross domestic product rose by 0.3 per cent in the third quarter, the same rate seen in the second quarter but below the 0.6 per cent rate forecast by economists surveyed by Reuters.
"It's slightly disappointing. We were looking for a much firmer reading," said Silvio Peruzzo, an economist at Royal Bank of Scotland in London. "But it was the second consecutive quarter of positive growth which bodes well for the economy, so we remain optimistic overall."
The figures from France came out shortly after Germany reported a 0.7 per cent rise in its third quarter GDP and French economy minister Christine Lagarde said France would meet the European Union's public deficit limit of 3 per cent of gross domestic product by 2014.
"We can't cut the deficit and at the same time continue the recovery plan," Ms Lagarde told Europe 1 radio. "My proposal is to continue the recovery plan in 2010...and fix a realistic timeframe," she said.
"For me, a realistic timeframe, that's 2014," she said.
She earlier confirmed an economic recovery was in place.
"In the third quarter, the French economy was positive, it grew by 0.3 per cent," she told Europe 1 radio ahead of the official announcement of the data scheduled at 0750 GMT.
She said full-year GDP for 2009 would contract, but enter 2010 "with elan".
France pulled out of recession in the second quarter. A survey of economists by Reuters showed a consensus forecast of growth of 0.6 per cent in the third quarter.
Data this week showed industrial output grew over the third quarter as a whole, while consumer spending and confidence indicators have pointed to a relatively buoyant mood among French shoppers, despite a steady rise in unemployment.
The third quarter GDP data showed exports rising faster than imports as the world economy started to pick up, with trade contributing positively to the overall growth figure.
Consumer spending was no more than stable, however, suggesting that domestic demand, a vital element in the French economy, remains uncertain.
"One thing which was clearly on the weak side this summer was consumer spending and we suspect that it could explain quite a bit of the kind of disappointing result we have today," said Gilles Moec, senior European economist at Deutsche Bank.
Rising unemployment has undermined consumer confidence but there was some positive news in payroll data reported separately by Insee today.
The agency said non-farm payrolls were roughly flat in the third quarter, with 5,500 jobs lost, a relatively small decline after the sharp falls seen since the second quarter of 2008.
Inflation data contained few surprises, with a 0.1 per cent monthly rise in EU-harmonised consumer price inflation and a 0.2 per cent annual decline.