France’s economy recorded zero growth in the first quarter of the year, weighed down by weak domestic demand and a sharply negative contribution from foreign trade, according to the national statistics agency INSEE.
The first estimate of gross domestic product (GDP) shows that external pressures, including the impact of ongoing geopolitical tensions in the Middle East, contributed to the stagnation. The conflict, which began on February 28, is said to have affected economic activity and trade flows.
The flat growth figure marks a downgrade from earlier projections. Just weeks ago, the Banque de France had estimated that the economy could expand by as much as 0.3 per cent in the January–March period. INSEE had also revised its own forecast downward from 0.3 per cent to 0.2 per cent before ultimately reporting zero growth.
Economists attribute the stagnation to subdued household consumption and weaker external demand, which combined to offset any modest gains in other sectors.
The latest figures highlight the fragility of France’s recovery momentum amid global uncertainty, with analysts noting that trade-sensitive sectors remain particularly exposed to geopolitical shocks and shifting demand patterns.
