(Reuters) – France’s economy retreated slightly in the fourth quarter as the Paris 2024 Olympic Games effect waned, statistics agency INSEE said on Thursday in its quarterly gross domestic product (GDP) report.
The euro zone’s second-biggest economy declined by 0.1% in the last three months of 2024 after an unrevised 0.4% rise in the third quarter, preliminary data from INSEE showed.
The Olympic Games underpinned French third-quarter growth due to sales of household services, tickets and broadcasting rights, INSEE said.
Domestic demand contributed positively to French GDP in the fourth quarter, although in a less pronounced way than in the previous one.
The contribution of foreign trade was again negative in the in the last quarter of the year as exports declined, while imports rebounded.
Inventories made a slightly negative contribution to GDP in the quarter after a mildly positive one before.
A Reuters poll of 30 economists had on average forecast stagnation in gross domestic product in the fourth quarter, with estimates ranging from -0.2% to +0.3%.
On average over 2024, GDP increased by 1.1% (after +1.1% in 2023 and +2.6% in 2022), INSEE said.
(Reporting by Michal Aleksandrowicz; Editing by Christopher Cushing and Sharon Singleton)
Comments