FX.co ★ France Q2 GDP Growth Confirmed at 0.3%

In the second quarter of 2025, the French economy expanded by 0.3% quarter-on-quarter, aligning with preliminary predictions and accelerating from a 0.1% increase in the first quarter. This represents the most robust growth in three quarters. Final domestic demand made a slight contribution, as household consumption remained flat following a previous 0.3% decline. A significant drop in energy expenditures was balanced by a recovery in the food and accommodation services sectors. Concurrently, government expenditures increased by 0.4%, up from a 0.2% rise. Inventory levels contributed 0.5 percentage points to GDP, marking the second consecutive period of positive contribution. However, fixed investment contracted by 0.1% for the second consecutive quarter, largely due to persistent weakness in the construction sector and a decline in transport equipment investment. Conversely, net trade negatively impacted growth by 0.3 percentage points, as exports rose by 0.5% (compared to a 1.2% decrease in Q1), driven by firms accelerating shipments to the US in anticipation of impending tariffs. Meanwhile, imports increased by 1.3%, up from 0.4%, spurred by a surge in refining activities. On a year-over-year basis, GDP increased by 0.8%, surpassing the 0.6% growth recorded in the first quarter.