French Economy Shows Resilience with 0.9% Growth in 2025 Amid Structural Challenges

In 2025, the French economy grew by 0.9%, narrowly avoiding recession and showing resilience compared to its European neighbors, notably Germany, which recorded growth below 0.3%. This economic performance slightly exceeded government forecasts but was lower than the 1.2% growth seen in 2024. According to Lucile Bembaron of Astérès, despite a difficult political and economic climate, France managed to maintain positive growth, underscoring the economy's underlying strength.

However, France’s economic landscape remains marked by significant challenges. Consumption remains weak and investment has stagnated, which clouds the outlook for sustained robust growth. Public finances are also under increasing pressure, an issue that has drawn attention with recent institutional developments.

On February 23, Amélie de Montchalin took office as the first female president of the Cour des comptes, the French Court of Audit, a key institution responsible for overseeing public spending and budgetary discipline. This appointment is significant as France faces scrutiny over its fiscal trajectory from both Brussels and financial markets. The Cour des comptes, under Montchalin’s leadership, is expected to play a crucial role in advocating for tighter control of state expenses and supporting structural reforms to improve fiscal sustainability.

At the European level, European Central Bank President Christine Lagarde’s upcoming speech is highly anticipated. Her comments on inflation and monetary policy will likely influence market expectations about the ECB’s stance in 2026, impacting the broader Eurozone economic outlook.

Despite ongoing structural issues, France’s relative economic health compared to some European peers highlights its resilience. Continued attention to fiscal oversight and monetary policy will be critical to navigating the challenges ahead in 2026.