France’s economy stalled in the first quarter of the year, recording zero growth as weak domestic demand and declining foreign trade weighed on activity, according to the country’s statistics agency INSEE.
Preliminary data on gross domestic product (GDP) showed that the economy failed to expand between January and March, with analysts pointing to reduced consumer spending and a sharp negative contribution from exports.
The slowdown has also been linked to wider global tensions, including the conflict in the Middle East that began on February 28, which has added pressure to international trade and economic stability.
The latest figures come as a surprise after earlier projections suggested modest growth. The Banque de France had estimated expansion of up to 0.3 percent for the quarter, while INSEE had already revised its own forecast down from 0.3 percent to 0.2 percent before the latest data confirmed no growth at all.
The flat performance highlights growing concerns about France’s economic momentum, particularly as external shocks and weak internal demand continue to weigh on recovery.
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