French Economy Stagnates Unexpectedly in Q1 as Iran Conflict Effects Emerge

Deep News04-30

The French economy failed to expand in the first quarter, highlighting the impact of stagflation risks triggered by the conflict in Iran. According to the French National Institute of Statistics and Economic Studies (Insee), gross domestic product (GDP) remained flat quarter-on-quarter, dragged down by weak trade and domestic demand. The median forecast from analysts was for growth of 0.2%, following a 0.2% expansion in the fourth quarter of last year. Data showed that consumer spending fell by 0.1% in the first quarter, while household investment dropped by 0.7%, both exerting a drag on the economy. Business investment declined by 0.2%. Due to a 3.8% slump in exports, net trade subtracted 0.7 percentage points from GDP.

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