French Economy Stagnated in Q2, Lagging Estimates
Exports rose 2.9% and household consumption 0.3% as a rebound in aeronautical shipments offset wider economic weakness, INSEE said.
- On Friday, August 28, 2026, statistics office INSEE reported France's economy stagnated at 0.0% growth in the second quarter, missing the average forecast of +0.2% in a Reuters poll of 23 economists.
- Growth across Europe has been hit by a series of external shocks over the past year, as a tariff dispute with the United States weighed on exports, while the US-Israeli war with Iran pushed up oil prices.
- Household consumption rebounded to +0.3% from-0.3% in the first quarter, driven by demand for food and energy, while exports rose sharply to +2.9% following a strong recovery in aeronautical shipments.
- France's harmonized inflation rate accelerated to 2.7% year-on-year in August, rising from the 2.4% recorded for July due to higher energy prices, particularly in oil products, INSEE said.
- France faces a high budget deficit while simultaneously pushing for European rearmament and technological innovations, navigating complex fiscal pressures amid ongoing economic instability.
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France's gross domestic product (GDP) remained stable between April and June, according to the INSEE, which revised its previous estimate (+0.2%) in decline on Friday. The Institut national de la statistique also revised its figures for the first quarter, to -0.2%, compared with -0.1% before. The second economy of the euro area thus barely escapes from the technical recession, which is characterized by two consecutive quarters of decline of GDP.…
French growth remained zero (+0.0%) in the second quarter according to INSEE, which announced on Friday that it had revised its first estimate downwards.
The second economy in the euro area, therefore, barely escapes the technical recession, which is characterized by two consecutive quarters of decline in GDP.
The GDP of the second quarter is revised downwards: it is not only "the heat wave" cited by the minister of the Lescure Economy. It also weighs the public debt monsters and spread to the maximum by the end of 2024. And Fitch's judgment is feared
In preparation for the 2027 budget, the Institut national de la statistique et des études économiques has just revised downwards, Friday 28 August, the results of French growth in the second quarter of this year. We are no longer talking about growth at 0.2%, but of zero growth now. INSEE has also slightly reduced the growth in the first quarter. All the visionaries are red and France is slightly escaping from the recession.
French Inflation Quickens to Highest Level Since May on Energy
Spanish inflation surged to more than double the European Central Bank’s 2% target while France’s reading exceeded expectations, strengthening the case for an increase in interest rates next month.
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