French economy faces Q2 contraction

The French economy remained flat in the second quarter of 2026, with zero growth, contrary to expectations of a 0.2 percent increase. This came after final data showed exports rebounded strongly by 2.9 percent, along with a 0.3 percent rise in household spending, following a decline in the previous quarter. Despite the economic resilience, France faces challenges including an increase in the inflation rate to 2.7 percent in August due to rising energy prices, as well as budget issues resulting from external shocks, amid efforts to strengthen defense capabilities and investments in artificial intelligence.

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