French economy stagnated in second quarter, lagging estimates
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A view of the city rooftops of residential apartment buildings and the Paris skyline seen from the giant Ferris wheel in the Jardin des Tuileries during sunset, in Paris, France, July 17, 2026. Picture taken through a window. REUTERS/Yara Nardi
Aug 28 (Reuters) - France's economy remained stable in the second quarter, final data from statistics office INSEE showed on Friday, below the preliminary reading of a 0.2% rise for the euro zone's second-largest economy.
The statistics office reported a result of 0.0%, also missing the average forecast of +0.2% in a Reuters poll of 23 economists.
Exports rose sharply to +2.9% after -3.0% in the previous quarter, driven by a strong rebound in aeronautical exports, the office said.
Household consumption, the traditional driver of French growth, also rebounded to +0.3% from -0.3% in the first quarter of 2026, boosted by a rise in consumption of food, energy and manufactured goods.
Domestic consumer spending was resilient through July as well, while buyers' confidence remained steady for the last two months.
Growth in France, like in much of Europe, has been hit by a series of external shocks over the past year, including a tariff dispute with the United States that has weighed on exports, while the U.S.-Israeli war with Iran has pushed up oil prices and dampened tourism.
On top of the slow economic growth, France is grappling with a high budget deficit while pushing for European rearmament and AI innovations.
(Reporting by Mateusz Rabiega in Gdansk, editing by Milla Nissi-Prussak)
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