France's GDP registered modest growth by 0.1% in volume terms in Q3, following a 0.6% rise in Q2, according to the French National Institute of Statistics and Economic Studies (INSEE) on Tuesday.

Within its preliminary report, INSEE said the country's final domestic demand accelerated and made a positive contribution to GDP growth in Q3 by 0.7 points. This followed on from a 0.2-point rise between April and June this year.

The increase was "due to the combined rise in household consumption and gross fixed capital formation," according to INSEE.

That said, foreign trade contracted in Q3, with a decline in both exports and imports. This led to a negative contribution to GDP growth during the quarter.

The country's statistics institute has retained its annual GDP growth estimate at 0.9% for 2023 as a whole. Yet this is under the 1% annual growth target unveiled in July by France's Economy Minister Bruno Le Maire.

The minister welcomed the French economy's continued growth despite elevated interest rates aimed at reducing inflation.

"In a degraded environment, the French economy is holding on," he told journalists.

Data published by INSEE revealed inflation made a significant slowdown in October to an annual rate of 4% from 4.9% in September.

The decline was predominantly down to a fall in energy prices compared to the same time last year.

The Economy Minister added that France is "in the process of exiting the inflationary crisis."

Moreover, European Central Bank policymaker and French central governor Francois Villeroy de Galhau said inflation had passed its peak in France: "Our monetary policy must now be guided by confidence and patience: confidence that we are making firm progress towards bringing inflation down to 2% by 2025; patience in stabilising interest rates at their current level for as long as is still necessary," he said.