French Economy Surpasses Expectations with 0.9% GDP Growth in 2025

The French economy recorded a GDP growth of 0.9% for the year 2025, surpassing initial government forecasts of 0.7%. Data released on January 30, 2026, by the National Institute of Statistics and Economic Studies (Insee) showed a fourth quarter expansion of 0.2%, a slowdown from 0.5% in the previous quarter, but sufficient to maintain annual growth above expectations.

This growth, although positive, remains below the rates achieved in 2024 and 2023, which saw increases of 1.1% and 1.6%, respectively. A key driver of the improved performance in 2025 was a strong rebound in external trade after two years of negative contributions. Particularly robust export sectors included aerospace, naval, and digital services, even amid challenges such as American tariffs and global trade disruptions.

Household consumption exhibited mixed trends: while consumption in clothing and petroleum products saw increases toward the end of the year, overall household consumption of goods declined in November and December. A cautious consumer environment was reflected in a high savings rate of 18.4%, indicating restrained spending. Service consumption increased slightly, notably in transport services, but the overall consumption trend showed moderate growth of about 0.3% in the last quarter.

Economy Minister Roland Lescure highlighted that company investment, recruitment, and production continued to underpin economic resilience, with the manufacturing sector—especially aerospace and defense—showing strong performance during the year's second half.

Looking forward, economic forecasts remain cautiously optimistic. The government expects around 1% growth in 2027, with the Bank of France predicting 1% growth for both 2026 and 2027. However, ongoing political instability and uncertainties around budget approvals contribute to cautious outlooks for future growth.