Impacted by the Iran situation, France's economic growth unexpectedly stalls

CryptoWorld News reports that, impacted by the Iran situation, France’s economy was unable to grow in the first quarter, showing vulnerability to the risk of stagflation triggered by the Iran war. The National Institute of Statistics and Economic Studies (INSEE) said that, affected by trade headwinds and weak domestic demand, Q1 GDP was flat compared with the last three months of 2025, coming in below the market’s 0.2% growth expectation. Thursday’s data kicked off the release of a dense schedule of key data from major Eurozone economies, with expectations that Eurozone GDP will record solid 0.2% growth. However, these reports cover only the first month of the Middle East conflict and have not yet reflected the full slowdown impact on Europe’s economy caused by a surge in energy costs.

French data has already shown that the economy is being dragged down: consumer spending fell 0.1% in the first quarter, and household investment fell 0.7%. Business investment also declined by 0.2%. Due to a 3.8% drop in exports, net trade contributed negatively to GDP by -0.7%. Inventory increases contributed 0.8%, partially offsetting the above drag.