France heat, drought to cut 0.1% from growth, ministry says

France's finance ministry said Wednesday that drought and record heatwaves this summer will shave 0.1 percent off the country's economic growth this year.

Ministry officials told a parliamentary hearing in Paris that harvests would suffer for several crops, with agricultural production set to fall eight percent this year.

French corn production is seen falling 35 percent, while overall fodder growth was one-third below normal levels as of August 10, the officials said.

France is one of Europe's biggest grain producers and exporters. Farmers across the continent have been hit by repeated extreme heat that scorched fields and droughts that lowered river levels.

A finance ministry document provided to journalists said other sectors had also been affected by the heat, but that the macroeconomic effects should be more limited.

Environment Minister Monique Barbut said in mid-August that the direct and indirect impacts of the heatwaves would cost France 10 to 15 billion euros, or $12 billion to $17 billion.

The French government earlier forecast 2026 GDP growth of 0.7 percent. Economists have warned that target is unlikely to be met after growth stalled in the second quarter and the economy contracted 0.2 percent in the first three months of the year.