French economic growth confirmed at 0.3% in second quarter - INSEE

(Reuters) -France's economy grew slightly in the second quarter, final data from statistics office INSEE showed on Friday, confirming the preliminary reading of 0.3% that showed the euro zone's second-largest economy gaining momentum.

The result was in line with an average forecast of 0.3% in a Reuters poll of 21 economists.

Exports rebounded moderately to +0.5% after -1.2% in the previous quarter, boosted by a strong rise in exports of pharmaceutical products, the statistics office said.

Household consumption, the traditional driver of French growth, rebounded slightly to 0.0% from -0.3% in the previous quarter, as an increase in spending on food and services offset a sharp drop in energy spending (-2.4% in Q2 after +0.8% in Q1).

Quarterly growth in France is forecast to hold at 0.2% from the second quarter through the remainder of the year, INSEE had said in June.

France is grappling with relatively slow economic growth and and a high budget deficit.

Prime Minister Francois Bayrou wants to reduce the budget deficit from 5.4% of GDP this year to 4.6% in 2026, ultimately targeting the EU's 3% fiscal deficit limit by 2029.

A confidence vote on September 8 will test Bayrou's minority government over his ambitious budget-cutting plans.

(Reporting by Alban Kacher; Editing by Matt Scuffham)

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