France's Economy Flat in Q2, Missing Growth Forecasts
France's GDP was unchanged in Q2, missing forecasts of 0.2% growth. Exports surged 2.9% but household spending and external shocks kept growth flat.
France's economy recorded no growth in the second quarter, according to final figures released by the national statistics office INSEE. The reading was below the preliminary estimate of 0.2% expansion and also missed the average forecast of +0.2% from a poll of 23 economists.
The flat result came despite a sharp rebound in exports, which rose 2.9% after contracting 3.0% in the previous quarter. The statistics office attributed the improvement to a strong recovery in aeronautical exports.
Household consumption, traditionally a key driver of French growth, also recovered, rising 0.3% after a 0.3% decline in the first quarter. The uptick was supported by increased spending on food, energy, and manufactured goods.
Consumer spending remained resilient through July, and buyer confidence stayed steady over the past two months.
Like much of Europe, France has faced a series of external shocks over the past year. A tariff dispute with the United States has weighed on exports, while the U.S.-Israeli war with Iran pushed up oil prices and dampened tourism.
Beyond sluggish growth, France is also dealing with a high budget deficit while pursuing European rearmament and AI innovation initiatives.