France growth forecast cut to 0.4% by INSEE

France's national statistics agency INSEE cut its forecast for the country's economic growth this year to 0.4% on Thursday, saying the French economy had fallen behind its European neighbours.

The new forecast would be below the 0.9% expansion in gross domestic product that France registered in 2025.

Dorian Roucher, head of INSEE's forecasting unit, said activity weakened in the winter and remained flat in the spring, unlike in the rest of Europe.

INSEE expects growth to return in the second half of the year after a 0.2% contraction in the first quarter and a flat second quarter. It forecast growth of 0.1% in the third quarter and 0.2% in the fourth quarter.

The agency cited weak consumer spending, the main driver of the French economy, as household purchasing power remains squeezed.