France's Economy Shows Resilience with Positive Growth Projections for 2025 and 2026

France’s economy is projected to grow steadily with 0.9% growth in 2025 and a strong outlook for 2026 driven by investment and trade.

    Key details

  • • France's economy is expected to grow by 0.9% in 2025, exceeding earlier forecasts.
  • • Insee predicts a growth rate stabilizing with a 1% increase by mid-2026.
  • • Business investment is set to rebound with growth in the first two quarters of 2026.
  • • External trade will positively contribute to growth, with exports growing faster than imports.

France's economy has demonstrated notable resilience throughout 2025, with a growth rate projected at 0.9%, slightly up from an earlier forecast of 0.8%, according to the National Institute of Statistics and Economic Studies (Insee). This growth marks a moderate decline from the 1.1% seen in the previous year but signals a steady expansion despite consumer pessimism.

Looking ahead to 2026, economic growth is expected to stabilize and align closely with the average growth rates of the 2010s. Insee forecasts a quarterly growth of 0.3%, culminating in an accumulated growth of 1% by the middle of the year. This outlook is bolstered by several key factors including a robust rebound in business investment, which is anticipated to grow by 0.3% in the first quarter and 0.4% in the second quarter of 2026. Household investment is also set to increase steadily at a rate of 0.6% per quarter, complemented by a slight acceleration in household consumption of 0.3% in the first quarter.

External trade is projected to positively contribute to economic expansion, with exports expected to outpace imports, supporting a favorable trade balance. The rebound in business investment towards the end of 2025 plays a crucial role in maintaining this positive momentum.

Together, these factors suggest a cautiously optimistic economic climate for France heading into 2026, with early indicators pointing towards sustained growth and recovery despite ongoing challenges in consumer sentiment.

This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.

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