Final data shows France’s economy shrank slightly in the first quarter, missing initial estimates of no growth.
France’s economy contracted by 0.1% in the first quarter, revised downward from a preliminary estimate of 0.0% growth, according to final GDP data. The decline marks a sharp slowdown from the 0.2% expansion recorded in the previous quarter.
Analysts had expected the preliminary flat reading to hold, but weaker-than-anticipated domestic demand and trade flows weighed on output. The revision underscores concerns about stagnation in the eurozone’s second-largest economy amid high interest rates and subdued external demand.
Markets are monitoring the data for potential implications on European Central Bank policy, though no immediate reaction was reported.