French Economy Sees Modest Growth Despite Earlier Downturn
- France's economy grew by 0.2% in the second quarter of 2026, recovering from a 0.1% decline in the first quarter.
- Domestic demand improved as consumer spending increased by 0.2%, and exports rose enough to offset imports, contributing positively to GDP.
- The government lowered economic forecasts and acknowledged challenges related to inflation and reducing the fiscal deficit.
- The European Central Bank kept interest rates steady in July but indicated possible future hikes due to inflation risks and economic uncertainties.
27 Articles
27 Articles
The French economy showed recovery in the second quarter of this year, driven by household consumption and robust exports, overcoming some of the uncertainty about the course and consequences of the conflict in the Middle East. Exclusive material for subscribers. To have full access, access the link of the subject and register.
(Paris=Yonhap News) Correspondent Song Jin-won = The French economy returned to positive growth in the second quarter, driven by a recovery in household consumption and exports.
Guest of France Inter this Thursday, July 30, the Minister of Economy and Finance Roland Lescure welcomed the rebound of growth in the second quarter of 2026, at +0.2%, driven not only by exports but also by household consumption... In particular the purchase of vehicles...
After a 0.1% decline in GDP in the first three months of 2026, the slight rebound in the second quarter (+0.2%) was largely due to exports, particularly in aeronautics.
France's economy is growing again after the setback at the beginning of the year. Spain is again growing strongly, while inflation remains above the ECB target.
The slight increase in GDP between April and June is lower than INSEE's forecast, which so far expected growth of 0.3% after a decline of 0.1% in the first quarter.
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