France's economy grew before US imposed tariffs

The Bank of France has slightly raised its estimate of the country's economic growth for the first quarter. The central bank's monthly survey of 8,500 French companies, as well as other indicators point to a 0.2% increase in GDP in the period from January to March. In its previous report, the regulator estimated economic growth at 0.1–0.2%.

The performance of the country's manufacturing sector in March exceeded expectations, the Bank of France stated. There were signs that some sectors, including luxury goods and alcoholic beverages, had increased shipments to the US ahead of higher trade tariffs.

Most of the data from the central bank's survey was collected before Trump announced he would impose sweeping import levies. Even so, the uncertainty indicator rose across all sectors of the French economy, with industry hitting its highest level in more than two years.

Representatives of the financial regulator do not have precise information on how much damage the US trade policy will cause in the short term. At the same time, the French government has already announced its intention to reduce GDP growth forecasts for this year due to the tariffs.