French Economy Sees Slight Growth in First Quarter

Economic activity in France grew by a slight 0.1% during the first quarter of this year, due to stagnant household consumption and a decline in investment.

According to preliminary data released today by the French National Institute of Statistics and Economic Studies, this limited growth in GDP between January and March was in line with the institute’s expectations, following a 0.1% contraction in the fourth quarter of 2024 due to the impact of Paris hosting the Olympic Games.

The institute explained that economic performance during the first quarter of this year was affected by weak household consumption, which stabilized at 0.2% over the past three months, without registering a significant improvement.

Investment continued to decline, recording a 0.2% decline, following a 0.1% decline in the fourth quarter of last year, at the household and public administration levels.

Foreign trade also contributed negatively to growth, declining by 0.4 percentage points, due to a significant decline in exports of 0.7%, compared to a 0.4% increase in imports.