Economics

French Economy Shows Resilience Amid Record Inflation, Ukraine War 

  • Bank of France puts second-quarter GDP growth at about 0.25%
  • Share of firms planning to raise prices falls for second month

The Banque de France building in Paris

Photographer: Thierry Stefanopoulos/Bloomberg 

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The Bank of France said the economy grew by about 0.25% in the second quarter, despite record inflation, the knock-on effects of Russia’s invasion of Ukraine and growing uncertainty about the outlook for business.

According to the central bank’s assessment published late Tuesday, which is based on a monthly survey of 8,500 firms, industrial activity was stable and services advanced slightly in June. This month, business leaders expect a slight decline in industry and moderate growth in services.