France's economy retreated slightly in the fourth quarter as the Paris 2024 Olympic Games effect waned, statistics agency INSEE said on Thursday in its quarterly gross domestic product (GDP) report.

The French economy grew 1.1 percent in 2024 but shrank in the fourth quarter as a political crisis gripped the country after a boost from the Paris Olympic Games, official data showed Thursday. The institute had expected the economy to post zero growth in the October-to-December period after growing by 0.

GDP was 0.1% less in the fourth quarter of 2024 than the third, as political deadlock took its toll on business and consumer confidence and the glow from the summer Olympics faded.

France’s economy contracted at the end of last year as tailwinds from the Paris Olympics faded and a government collapse bruised confidence among businesses and consumers.