France’s economy expanded by an estimated 0.3% in the first quarter of 2026, slightly faster than the previous quarter, according to the Bank of France.
The central bank said growth was partly driven by businesses rushing to place orders ahead of expected price increases following the outbreak of war in the Middle East, which has disrupted energy markets and global trade flows.
The figure compares with 0.2% growth in the final quarter of 2025, keeping Europe’s second-largest economy on a modest but steady growth path.
According to the Bank of France, activity in March remained stable across industry, services, and construction, with manufacturing performing slightly better than expected.
Strong output in sectors such as aerospace, nuclear energy, and defence helped support industrial production, while services and construction also contributed to overall growth.
Despite the positive numbers, the central bank warned that uncertainty is rising due to the ongoing conflict, with businesses becoming more cautious about future activity.
Survey data showed that concerns about supply chains and energy costs have increased, especially for industries dependent on oil-based materials like plastics and chemicals.
The bank also noted that more companies are planning to raise prices in April, with inflation pressures expected to build further if energy disruptions continue.
Governor François Villeroy de Galhau said France is still expected to grow by around 0.9% for the full year, but warned that geopolitical risks remain a major challenge for the economy.
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