FX.co ★ France Q2 GDP Growth Beats Estimates

The French economy experienced a 0.3% quarter-over-quarter increase in Q2 2025, an improvement from the 0.1% growth seen in Q1, according to preliminary data. This growth rate is the most robust since Q3 2024, primarily fueled by a positive contribution from changes in inventories (0.5 percentage points), while final domestic demand remained stagnant and net trade exerted a drag on overall growth. Household consumption saw a slight increase of 0.1%, recovering from a 0.3% drop in Q1. This uptick was bolstered by stronger goods purchases during the Easter holiday period and favorable weather conditions, which particularly benefited the food and tobacco sectors, as well as a robust recovery in accommodation and catering services. Government expenditure continued its steady rise, maintaining a 0.2% increase from the previous quarter. However, fixed investment declined further, contracting by 0.3% compared to a 0.1% reduction in the prior quarter, largely due to persistent weaknesses in the construction sector and a decrease in manufactured goods. Exports rebounded with a 0.2% rise after a significant 1.1% fall in Q1, as companies accelerated shipments to the U.S. Meanwhile, imports increased by 0.8%, spurred by heightened demand for energy and industrial goods. On an annual basis, GDP rose by 0.7%, up from the 0.6% growth recorded in Q1.