Olympic Games Boost French Economic Growth Beyond Forecasts

French economic growth exceeded forecasts, reaching 0.4% in the third quarter of 2024 due to the Paris Olympic Games. Increased tourism spurred consumer spending, adding momentum to the economy. Political shifts, including the appointment of Michel Barnier as Prime Minister, shape France's financial landscape.

French economic growth has outpaced analysts' predictions, achieving a 0.4% increase in the third quarter of 2024. This boost can largely be attributed to the influx of tourists attending the Paris Olympic Games, according to preliminary data released by the statistics agency INSEE.

Economists surveyed by Reuters had anticipated a 0.3% growth in the third-quarter GDP. France, the euro zone's second-largest economy, demonstrated resilience with consumer spending driving a stronger-than-expected 0.5% growth rate in the third quarter, following stagnation in the preceding quarter.

These preliminary figures align with the revised forecasts presented by INSEE in September. Meanwhile, political developments add another layer of complexity as President Emmanuel Macron recently appointed Michel Barnier as Prime Minister. Barnier faces significant challenges in passing the 2025 budget and reducing the deficit amidst a polarized post-election parliament.

(With inputs from agencies.)