French Economy Sees Modest Growth Despite Earlier Downturn

The French economy expanded by 0.2% in the second quarter, driven by increased household spending and stronger exports. This growth comes after a slight contraction of 0.1% in the first quarter. France revised its growth forecast for 2026 from 0.9% to 0.7% in July.

The French economy saw a slight expansion of 0.2% in the second quarter, according to official data released on Thursday. This growth aligns with expectations, as analysts had projected a similar increase, driven primarily by a rise in household spending and a boost in exports.

This period of growth is a rebound from the first quarter, when the economy experienced a contraction of 0.1%. Despite this temporary downturn, the euro zone's second-largest economy has shown signs of resilience and recovery.

In July, France adjusted its economic outlook for 2026, lowering its growth forecast from 0.9% to 0.7%, reflecting cautious optimism amid changing economic circumstances.