France’s economic growth surpassed expectations in the third quarter of this year, accelerating to 0.4% from 0.2% in the previous quarter, driven by the economic boost from the Paris Olympic Games, according to preliminary data from the statistics agency INSEE released on Wednesday.

Economists surveyed by Reuters news agency had on average, predicted a 0.3% GDP growth for the quarter.

A surge of tourists attending the Paris Olympics drove consumer spending up by 0.5% during the third quarter, following stagnant growth in the second.

This preliminary figure aligns with INSEE’s forecast update from September, when it adjusted its GDP growth projection for the eurozone’s second-largest economy to 0.4%, down from an earlier estimate of 0.5%.

Finance Minister Antoine Armand celebrated the news on the X social network, stating it showcased “the strength of our economy, which supports employment and the purchasing power of the French.

“This is an achievement for the coming months which will be reinforced by declining inflation, lower interest rates and the reforms undertaken by the government,” he went on to add.

After weeks of searching for a new prime minister, President Emmanuel Macron appointed conservative politician Michel Barnier in September. 

However, Barnier’s government lacks a parliamentary majority and faces the constant threat of being ousted. 

Ministers are currently locked in tense negotiations over the 2025 budget with the leftist NFP alliance, the far-right National Rally (RN), and even their centrist and conservative colleagues. Many view the budget's chances of passing as slim, France 24 reports.

If the NFP and RN were to unite in a confidence motion, they could potentially bring down the government, leaving France in a leadership vacuum, as new elections could not be held before July at the earliest.