French Economy Contracts in Q4 2024 Despite Annual Growth of 1.1%

Economic slowdown tied to post-Olympics downturn, political instability, and weaker household consumption.

France's GDP shrank by 0.1% in the fourth quarter of 2024, marking a slowdown after the 0.4% growth recorded in Q3.
The contraction follows the economic boost from the Paris Olympics and coincides with political turmoil, including the fall of the Barnier government in December.
Household consumption growth slowed to 0.4% in Q4, driven by increased spending on durable goods and energy but tempered by declines in services and food consumption.
Investment declined by 0.1% in Q4, with household investments falling by 0.3% and business investments remaining stagnant.
For 2024 overall, France's GDP grew by 1.1%, supported by positive contributions from trade, despite a challenging economic and political environment.