Overview
- Insee, which released its first estimate Thursday, said GDP was flat in the first quarter after a 0.2% rise at the end of 2025.
- Statisticians cited weak domestic demand and trade as drags, with household consumption down 0.1%, business investment down 0.4%, exports down 3.8% and imports down 1.7%, while inventory rebuilding kept output from slipping.
- A deeper hit in construction, which fell 1.5%, and a loss of about 11,400 jobs underlined the slowdown across sectors sensitive to higher costs and tighter budgets.
- The flat start leaves a carryover of about 0.5% for the year, making the government’s 0.9% target harder to reach after it already trimmed the forecast and lifted its inflation outlook to 1.9%.
- Eurostat reported euro area growth of 0.1% in Q1 and April inflation at 3% as energy prices rose after the Middle East conflict, and French retailers warned higher fuel costs could squeeze household spending by late May if pressures persist.