Overview

• France's GDP grew by a marginal 0.1% in the first quarter of 2025, following a contraction of 0.1% in Q4 2024.
• Household consumption dropped 1% in March, with significant declines in goods and energy spending, reflecting consumer caution.
• Investments by businesses, households, and public administrations fell by 0.2%, continuing a negative trend from the previous quarter.
• Net foreign trade reduced GDP by 0.4 points, with exports down 0.7% and imports up 0.4%, while inventory accumulation contributed positively by 0.5 points.
• Both the French government and Banque de France have revised their 2025 growth forecasts down to 0.7%, citing political instability and fiscal constraints.