However, the forecast by the National Institute of Statistics and Economic Studies (INSEE) is still lower than the 1 percent annual growth target announced in July by France’s Economy Minister Bruno Le Maire.

According to INSEE, survey data suggests “positive growth” for the second half of 2023 in France, but “without much momentum.”

“French GDP would grow by 0.1 percent in the third quarter of 2023 then by 0.2 percent in the fourth. As an annual average, growth would amount to 0.9 percent in 2023,” INSEE said in its report.

The Institute explained that the upward revision of the annual growth forecast was mainly due to the dynamism of better-than-expected growth in Q2.

The INSEE said that the inflation in France should stay around 4 percent, 3.9 percent and 4.2 percent for the last quarter of 2023.

For the whole year of 2023, average yearly inflation should be 5 percent, it added.

INSEE underlined that the current forecasts are subject to change, due to factors such as France’s monetary policy, and the possible rise of international prices for energy and raw materials.