Finance
French economy headed for meagre first half growth, INSEE says
Published by Global Banking & Finance Review®
Posted on March 18, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 18, 2025
1 min readLast updated: January 24, 2026
INSEE forecasts minimal growth for the French economy in early 2023, with consumer spending unable to fully offset weak business activity and government budget constraints.
PARIS (Reuters) - France's economy will barely grow in the first half of the year as consumer spending struggles to offset the impact of weak business activity and government belt tightening, the national statistics agency INSEE said on Tuesday.
After contracting 0.1% in the fourth quarter over the previous three months, the euro zone's second-biggest economy would grow only 0.1% in the first quarter and 0.2% in the second, INSEE forecast in its outlook.
Growth would be underpinned by higher consumer spending, which was forecast to increase by 0.4% in the first quarter and 0.2% in the second quarter, thanks to wage gains.
But that would in part be offset by flat public spending, as the government struggles to rein in its budget deficit with higher taxes, weighing on the corporate sector in particular.
(Reporting by Leigh Thomas; Editing by Bernadette Baum)
The article discusses the forecast for minimal growth in the French economy during the first half of 2023, as reported by INSEE.
Weak business activity and government budget constraints are key factors affecting growth, despite a slight increase in consumer spending.
Consumer spending is forecast to increase by 0.4% in the first quarter and 0.2% in the second quarter, driven by wage gains.
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