Volkswacht Bodensee - French economy returns to thin growth in first quarter

Gross domestic product (GDP) expanded by 0.1 percent between January and March in the eurozone's second biggest economy after a 0.1 percent contraction in the fourth quarter.

In the first quarter, growth was restrained by the reluctance of consumers to reach deep into their pockets, with household consumption unchanged after growing by 0.2 percent in the previous three months.

Investment for businesses, households, and government, meanwhile, continued to trend in negative territory, contracting 0.2 percent following a 0.1 percent contraction the previous quarter.

This growth update from France is the first to be published Wednesday ahead of those from Germany, Italy, and the eurozone itself.

The political context in the country remains unstable almost eight years into President Emmanuel Macron's tenure and casts a shadow over the economy.

Prime Minister Francois Bayrou's minority government is regularly threatened by the risk of a no-confidence vote that could bring it down.

Russia's war against Ukraine and President Donald Trump's imposition of tariffs have added to the uncertainty.

K.Hofmann--VB