FX.co ★ France Q2 GDP Stalls, Misses Growth Estimate

France’s economy was flat on a quarterly basis in Q2 2026, missing the preliminary forecast of 0.2% growth, after a 0.2% contraction in Q1. Domestic demand added 0.2 percentage points to growth, supported by a 0.3% rebound in household consumption (after a 0.3% decline in Q1) and a 0.4% increase in government spending (up from 0.3%). Fixed investment fell for a second consecutive quarter, but the pace of decline eased to 0.3% from 0.8%. Net exports also made a positive contribution, as exports rose 2.9% (after a 3.0% drop) and outpaced a 1.1% increase in imports (after a 0.6% decline). However, changes in inventories subtracted 0.7 percentage points from growth, reversing their positive impact in Q1. On an annual basis, GDP growth edged down to 0.7% from 0.8% in the first quarter.