France's Economic Growth Lags Behind Europe Amid Declining GDP Per Capita

France’s economic performance in 2025 revealed a modest growth of 0.9%, as reported by Insee, which, while surpassing earlier expectations — notably the Bank of France’s forecast of 0.6% — still lagged behind the European Union’s overall growth rate of 1.6%. Roland Lescure, France’s Minister of Economy, described this growth as “robust” given the context, especially as prior pessimistic predictions had been influenced by a trade war initiated by Donald Trump that threatened European exports. Despite concerns, the EU was able to implement tariffs totaling 15% on exports, mitigating some of the trade tensions.

However, the more concerning trend is France’s declining GDP per capita relative to its European peers. According to the latest Eurostat estimates for 2024, France’s GDP per capita, measured by purchasing power parity to account for price differences, is now 2% below the average of the 27 EU countries. This decline has been ongoing for over a decade but has accelerated significantly in the last three years. Éric Dor, director of economic studies at Ieseg School of Management, emphasizes this as a significant shift, indicating that France’s relative prosperity in Europe is waning. It reflects a broader structural challenge in French economic growth, which remains "mollish" compared to its European counterparts despite some positive signs in overall GDP growth.

This juxtaposition of slower GDP growth with declining GDP per capita positions France at risk of losing ground economically within the EU, prompting concerns about the underlying causes of this economic downturn and the long-term implications for living standards within the country.