French Economic Growth Accelerates

PARIS (Reuters) – French economic growth surpassed expectations, accelerating by 0.4% in the third quarter of 2024, up from 0.2% in the second quarter, driven by the impact of the Paris Olympic Games, according to preliminary data from statistics agency INSEE released on Wednesday.

Economists surveyed by Reuters had predicted an average 0.3% growth for the third quarter gross domestic product (GDP).

An influx of tourists for the Paris Olympics significantly boosted consumer spending in the eurozone’s second-largest economy, which grew 0.5% in the third quarter following a flat performance in the second quarter.

This preliminary estimate aligns with expectations set by INSEE in September, where it revised its forecast for French third quarter GDP growth down to 0.4% from 0.5%.

After weeks of struggling to appoint a new prime minister, President Emmanuel Macron appointed conservative veteran Michel Barnier in September. Barnier now faces the challenging task of securing the 2025 budget approval and reducing the deficit in the deeply divided post-election parliament.