France's Economy Surges with 0.5% Growth in Q3 2025, Exceeding Expectations
France's economy grew 0.5% in Q3 2025, exceeding forecasts thanks to strong exports and investment, with government optimism amid political challenges.
- • France's Q3 2025 economic growth reached 0.5%, surpassing forecasted 0.3% and market expectations of 0.1%.
- • Exports, especially in aeronautics, were the primary growth drivers, contributing 0.9 points to GDP.
- • Year-over-year GDP growth expanded by 0.9%, beating estimates of 0.6%.
- • Minister Roland Lescure called the performance remarkable amid political instability and stressed the need to pass the 2026 budget.
Key details
France's economy demonstrated strong resilience in the third quarter of 2025 with a 0.5% growth rate quarter-over-quarter, surpassing the initial forecast of 0.3% and market expectations of 0.1%, according to reports from Insee and financial analysts. This marks the fastest quarterly expansion since Q2 2023, while year-over-year GDP growth reached an impressive 0.9%, also above the projected 0.6% (ID: 122142, 122221).
The robust performance was largely driven by exports, notably in the aeronautics sector, which contributed significantly to GDP growth, alongside a decline in imports. Investment trends showed a positive uptick with business investment rising 0.9%, although household investment fell by 0.4%. Household consumption edged up slightly by 0.1%, balancing decreased food consumption with higher energy use (ID: 122142).
Economy Minister Roland Lescure praised the "remarkable performance," highlighting that despite political instability and global economic uncertainties, French companies continue to invest and export successfully. He stressed the urgency of adopting the 2026 budget to sustain confidence amongst businesses and households amid ongoing debates in a divided National Assembly, with contention over taxing the wealthy forming a central issue (ID: 122142).
The current economic trajectory suggests France may surpass its 2025 growth target of 0.7%, with the annual growth rate at 0.8% by the end of September. This optimistic outlook offers a positive signal for the nation's economy despite domestic and international challenges (ID: 122142, 122221, 122113).