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France’s Economy Stalls in Q1 on Weak Demand and Trade Hit

A jump in energy prices has also pushed April inflation to 2.2%.

The Eiffel Tower and the Paris skyline at sunset as seen from the Montparnasse Tower in Paris, France, March 11, 2026. REUTERS/Abdul Saboor
The expansion was driven by growth in exports as well as higher consumer and government spending
France's economic growth stalled in the first quarter

Overview

  • INSEE’s first estimate shows GDP was flat in the first quarter, halting the late‑2025 pickup.
  • Household spending slipped and shaved 0.1 percentage point from growth, reflecting softer domestic demand.
  • Foreign trade dragged growth by 0.7 points as exports fell sharply, according to the statistics agency.
  • Consumer prices rose 2.2% year over year in April, driven by a 14.2% surge in energy costs after the Middle East war lifted oil prices.
  • The government now projects 0.9% growth for 2026, and Finance Minister Roland Lescure has described the expected impact as very moderate.