(Reuters) -The French government maintains its objective of an economic growth of 0.7% this year, said the Minister of Economy and Finance Eric Lombard on Wednesday, after INSEE announced a 0.1% increase in gross domestic product (GDP) in France in the first quarter, according to its preliminary data.

The increase in GDP over the first three months of the year complies with the expectations of economists interviewed by Reuters after a contraction of 0.1% in the fourth quarter of 2024.

It has been driven by the increase in the production of goods and services and the positive contribution of variations in stocks, the INSEE said in a press release, while household consumption has marked the step.

Growth for 2025 – GDP evolution if activity stagnated over the next three quarters – would be 0.4% in April, according to INSEE data.

This growth achievement, “means that we are online to achieve our objective, which was recently adjusted, which is 0.7%,” said Eric Lombard during an interview on Sud Radio.

In April, the government lowered its annual growth forecast from 0.9 to 0.7%, while maintaining the target for reducing the annual public deficit to 5.4%.

“It will be a fight,” said the Minister of the Economy, however, promising to continue to “support businesses”, in this direction.

This first estimate of INSEE is also slightly below the expectations made in April by the Banque de France which provided growth for the French economy at 0.2% in the first quarter (against a target of 0.1-0.2% previously) compared to the previous three months, citing a rebound in added value in merchant services and in the manufacturing industry.

(Written by Kate Entringer, edited by Augustin Turpin)

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