Paris Olympics Propel French Economy Beyond Expectations

The French economy surpassed estimates by growing 0.4% in Q3 2024, bolstered by the Paris Olympics. GDP growth was higher than the projected 0.3%, aided by increased tourist spending. Finance Minister Antoine Armand hailed the figures, attributing them to economic strength despite political challenges.

In an impressive turn of economic events, French economic growth outpaced initial estimates, achieving a 0.4% rise in the third quarter of 2024. This improvement, compared to a previous 0.2% increase in the second quarter, is attributed primarily to the economic impact of the Paris Olympic Games, as reported by the statistics agency INSEE.

The influx of tourists attending the Olympics significantly boosted consumer spending, which grew by 0.5% during the third quarter, improving from a stagnant phase in the previous quarter. Economists had previously forecasted a 0.3% growth in GDP, underscoring the positive surprise in the assessment.

Finance Minister Antoine Armand expressed satisfaction on social media platform X, highlighting the economy's resilience in supporting employment and purchasing power. Meanwhile, newly appointed Prime Minister Michel Barnier faces the challenge of navigating political divisions to pass the 2025 budget and address deficit concerns.

(With inputs from agencies.)