France Q2 GDP Flat at 0.0% After Downward Revision From 0.2%
INSEE cut France's Q2 GDP to 0.0% q/q from +0.2% prelim, with annual growth at 0.5% versus 0.7% expected. The run marks two straight quarters without expansion.
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INSEE's final estimate, released Friday, Aug. 28, put French GDP at 0.0% quarter-on-quarter for the second quarter, revised down from the +0.2% preliminary reading.
The April-June result follows a 0.2% contraction in the first quarter. Year-on-year, GDP rose 0.5%, below the 0.7% economists had expected and down from 0.9% in the prior quarter.
France is the eurozone's second-largest economy, behind Germany. The European Central Bank sets a single policy rate for the bloc based on its inflation and growth readings, and French GDP is a direct component of the eurozone aggregate. The downward revision is one input into the growth side of that calculation. The euro trades on the gap between the expected path of ECB policy and the Federal Reserve's. That gap is the channel through which eurozone data reaches EUR/USD.
The revision erased the modest growth the preliminary estimate had shown. A flat quarter leaves the level of French output unchanged from the end of March, roughly 0.2% below where it stood at the end of 2025. The mid-year level is lower than the preliminary estimate implied. France has now gone two quarters without expansion, a run that stops short of a technical recession, the standard label for two consecutive quarters of contraction.
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