French Service Sector Growth Slows but Remains Vital in 2025

The French economy continues to be supported by its service sector, which remains the largest contributor, accounting for 36.8% of total value added and generating over 980 billion euros. However, the sector is showing signs of a structural slowdown. The value added by non-financial market services is projected to grow by 1.3% in 2025, a decline from 2.1% growth recorded in 2024.

Segment-specific trends reveal varying momentum within the sector. The hospitality and restaurant industry, while growing at 2.8%, has been slowing since 2022. The information and communication services are also experiencing reduced growth of 2.2%. Cultural activities have seen a significant downturn, with a 4.8% contraction following a 15.5% surge in 2024 tied to the Olympic Games.

On the demand side, domestic demand for services expanded by 1.8%, down from previous years’ 2.4%, but investment in services accelerated to 4.8%. This investment growth is particularly driven by legal and real estate activities alongside software spending, which comprises nearly half of service investment. Externally, France maintains a services trade surplus; however, export growth slowed to 1.1%, while imports grew by 3%, reducing the external surplus from 13.6 to 11.8 billion euros.

Employment in the service sector rose slightly by 0.3%, reaching 8.1 million full-time equivalents, which is 27.6% of total employment. Notably, self-employment increased by 3.8%, contrasting with a slight 0.5% decline in salaried jobs.

This nuanced picture depicts a sector still essential but adapting to broader economic deceleration trends, reflecting a transition into a more moderate growth phase for French services.