FX.co ★ France Q1 GDP Growth Confirmed at 0.1%

In the first quarter of 2025, the French economy experienced a marginal growth of 0.1% compared to the prior quarter, aligning with initial reports and recovering from a 0.1% decline in the last quarter of 2024. The increase in GDP was primarily supported by inventory changes, contributing a positive 1.0 percentage point, despite negative impacts from both final domestic demand and net trade. There was a 0.2% decline in household consumption, a downturn from the 0.1% decrease in the previous quarter, largely due to reduced expenditures on transport equipment. Additionally, government expenditure saw a deceleration, growing only by 0.2% as opposed to 0.4%. Fixed investment remained unchanged for two consecutive quarters, with continued weaknesses in the construction sector being offset by advancements in investments in the information and communication sectors. Export levels fell by 1.8%, steeper than the 0.7% drop previously, amid uncertainties stemming from U.S. tariff policies, although President Trump had announced a three-month suspension for several countries. Meanwhile, imports rose by 0.5%, a slight decrease from the previous 0.6%, driven by heightened energy requirements, particularly in gas and electricity, as well as other industrial goods. On a year-over-year basis, the GDP increased by 0.6%, consistent with the growth rate from the previous quarter, yet representing the weakest annual expansion since the fourth quarter of 2020.