Extreme heat and drought severely impact French agriculture, and extreme weather may hinder the country's annual economic growth

智通财经2026/09/02 13:51

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An assessment by the French Ministry of Finance indicates that this summer's drought and heatwave may reduce the annual economic growth rate by about 0.1 percentage points, mainly due to a sharp decline in agricultural income.
This estimate is still a preliminary judgment and does not constitute an official revision of the current full-year growth forecast of 0.7%. The Ministry of Finance pointed out that the drag on the overall economy is mainly reflected in an expected decrease of around 8% in agricultural output value, with extreme weather and high fertilizer costs intensifying the sector's difficulties.
The country's largest farmers' union stated that agricultural production losses this summer will exceed 1 billion euros, with the estimated loss from livestock and crop farming alone already surpassing 500 million euros. They called on the authorities to introduce large-scale relief measures to prevent farm closures.
The agricultural relief plan, originally scheduled to be announced by the Ministry of Agriculture on Thursday, has been postponed for several days. The ministry previously stated that the plan would include hundreds of millions of euros in weather disaster compensation.
The statistics bureau had previously revised the second-quarter economic growth from the initial value of 0.2% down to zero growth. The Minister of Finance directly stated this is the initial impact of the summer's extreme weather on the economy. The effects of weather on agriculture and the wider economy will become more apparent in subsequent quarterly data.

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Extreme heat and drought severely impact French agriculture, and extreme weather may hinder the country's annual economic growth

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