French Government Keeps Growth Forecast Despite Stagnation

France’s government is not revising its growth forecasts despite a surprise stagnation in the first quarter on weak domestic demand and a fall in exports, Finance Minister Roland Lescure said Thursday.

The economy failed to grow in the first three months of the year partly due to the impact of the start of the Iran war, and also because of temporary factors including a dip in public investment ahead of local elections as well as lower demand for energy as a result of mild temperatures, Lescure said.