French prospects in possible boost as recession ends

The French property market could be in line for a boost as new figures have revealed that the country came out of recession in the second quarter.

After 12 months of decline, France saw its economy grow by 0.3 per cent between April and June, defying the expectations of analysts and ministers.

A Reuters poll had predicted a 0.3 per cent decline in gross domestic product (GDP) and economy minister Christine Lagarde described the figures as "very surprising".

News of the growth came at the same time as Germany also emerged from recession with a 0.3 per cent GDP rise.

Such news may help bolster confidence in the French property market and increase the prospects of values rising over the next few month and years.

One causal factor in the recovery of France may be the low euro interest rate.

The main refinancing operations rate currently stands at one per cent, having been reduced from a level of 3.75 per cent since October last year.

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