France’s economic growth ground to a halt in the first three months of 2026, confounding economists’ expectations and exposing fragility in household spending and trade, official data has revealed on Thursday.
France’s economy recorded no growth in the first quarter of 2026, catching many economists off guard, according to figures released by the National Institute of Statistics and Economic Studies (INSEE).
The report states: “GDP in volume terms remained unchanged in the first quarter of 2026 (0.00%, following +0.20% in the fourth quarter of 2025).”
A key factor behind the stagnation was weak domestic demand, reflected in a 0.10% decline in household consumption and a 0.70 percentage point deterioration in external trade – a sharp reversal from the 0.60 point increase seen in the previous quarter. Exports fell by 3.80% in the first quarter, while imports dropped by 1.70%. A particularly marked decrease occurred in energy imports, including crude oil and natural gas, which plunged by 6.50%.
On April 13, economists at the Bank of France – the country’s central bank – had forecast 0.30% growth for the first quarter. Their projection was based on a “notable strengthening” of industrial output and a “healthy level” of activity in the services and construction sectors. However, INSEE data show that the overall output of goods and services rose by just 0.10%.
Despite business leaders voicing concerns over rising uncertainty due to energy price hikes following the outbreak of conflict between the United States, Israel and Iran, the Bank of France expressed confidence that the geopolitical tensions would have only a “limited impact” on business activity.
