The two economies that are at the euro zone's core were on widely divergent trajectories at the start of 2014, with Germany's economy surging head as French economic growth ground to a halt, reports The Wall Street Journal.
If sustained, that divergence could make it difficult for the European Central Bank to set an interest rate that is appropriate for both economies, while the contrast in performance will add to already growing pressure on French President François Hollande.
After increasing taxes sharply in the first 18 months of his presidency, the Socialist leader changed his approach in January, pledging to slash spending instead and cut taxes for business in a bid to get them to invest and recruit.
Germany's statistics agency Thursday said that in the three months to March, gross domestic product was 0.8% up on the last three months of 2013. That was the most rapid expansion since the first quarter of 2011, and double the rate of growth recorded in the final quarter of last year.
De Statius said domestic consumption was the main driver of growth, and particularly spending by households and the government. Foreign trade put a damper on growth, and preliminary calculations show exports fell while imports picked up.
That rebalancing of demand may placate some critics of Germany's growth model, who have long complained it has been overly reliant on exports, while its weak domestic spending has held back both the euro zone and global recoveries.
By contrast, French consumers tightened their belts and companies cut back on investment, data showed Thursday, indicating the wider euro zone recovery remains weak and vulnerable to setbacks.
In the first three months of 2014, the euro zone's second-largest economy failed to grow on a quarter-on-quarter basis, data from the French national statistics bureau, Insee showed. The French economy had grown 0.2% in the final quarter of last year and economists polled by The Wall Street Journal expected a slightly smaller slowdown to 0.1% growth in the first quarter.
Read more of this report from The Wall Street Journal.