French growth revised down for the first quarter

According to INSEE, French growth contracted by 0.2% in the first quarter of 2023, revising down a previous estimate that suggested a 0.1% decrease.

In the second quarter, growth was flat, signaling further fragility in the French economy. Roland Lescure, Minister of Economy, commented on these figures, referring to "the first concrete impact of the horrible summer we experienced."

INSEE attributes this decline in growth to a deterioration in agricultural production observed at the end of July, a period during which France faced challenging weather conditions.

The announced figures suggest that France narrowly avoided a technical recession, which is defined as two consecutive quarters of declining GDP.

The economic situation in France has raised concerns about economic stability, but analyses indicate that the reality of agricultural production has particularly weighed on these results.

Roland Lescure reflected on these results, emphasizing the tangible impact of recent climatic events on the economy.