In 2023, France’s economy experienced a notable surge of 0.9%, yet the momentum waned in the last two quarters, marking a period of stagnation. This growth marked a deceleration from the nation’s 2.5% annual growth rate in 2022, slightly below the government’s forecast of 1%.
Throughout much of 2023, France, the second-largest economy in the eurozone, grappled with near-zero growth, barring a modest uptick of 0.7% in the second quarter. Household consumption, a significant economic driver, contracted by 0.7% over the year and notably declined in the final three months.
Comparatively, Germany, the eurozone’s powerhouse, faced projections of recession in both 2023 and 2024, underscoring France’s relatively resilient performance in the preceding year.
Addressing the National Assembly, the chief economist of the Bank of France cited a more favourable global environment and said external demand for France was better than feared.
Looking ahead, the French government anticipates a further uptick in economic growth, forecasting a robust 1.4% expansion. However, François Villeroy de Galhau, the central bank governor, holds a more cautious outlook, foreseeing a more moderate growth trajectory of 0.9% for 2024.
