France GDP Flat in Q1 2026 on Mideast Energy Shocks

France's economy showed no growth in the first quarter of 2026, official data revealed Thursday, as energy shocks from the Middle East conflict disrupted trade and dampened domestic demand.

The national statistics agency INSEE reported that gross domestic product remained flat from January to March, a downturn from the 0.2 percent expansion in the previous quarter. This marked a sharper decline than anticipated, following recent forecasts of up to 0.3 percent growth from the Banque de France and a 0.2 percent projection from INSEE itself at the end of March.

Weak household consumption, which fell 0.1 percentage point, and a 0.4 percent drop in investment contributed to stagnant domestic demand excluding inventories. Exports plunged 3.8 percent, dragging net foreign trade by 0.7 percentage point and outweighing a modest 1.7 percent decline in imports. A buildup in inventories provided a 0.8 percentage point boost, averting an outright contraction. Production of goods and services rose only 0.1 percent overall.

The data reflect the early effects of a war in the Middle East that began on February 28 with U.S. and Israeli strikes on Iranian military targets, leading to an effective...