By Joshua Kirby
The French economy didn’t grow in the final months of last year, dragged by weak domestic demand.
Gross domestic product remained flat between October and December from the previous three-month period, figures from national statistics agency Insee showed Tuesday. This was a little lower than forecasts of a 0.1% increase, according to economists polled by The Wall Street Journal, though estimates for the third quarter were revised to zero growth from a previous figure of minus 0.1%.
It means the economy stagnated throughout the second half of 2023, and that for the year as a whole it grew just 0.9%, in line with forecasts set out in September by the Bank of France and slowing markedly from a year earlier.
Domestic demand both in industry and among households was limp at the end of the year, weighing on growth. Net trade conversely offered a positive contribution as weak demand hit imports, while exports were more or less stable on the quarter.
The BOF expects little in the way of a rebound this year, estimating the same rate of GDP growth for 2024 before a slight uptick next year.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
