Particle.news

Download on the App Store

France Faces Sluggish Growth and Rising Unemployment in 2025

Economic forecasts predict minimal GDP growth and a slight increase in unemployment as political uncertainty and budget constraints weigh on confidence.

  • The French economy is projected to grow by only 0.2% per quarter in the first half of 2025, following stagnation in late 2024.
  • Unemployment is expected to rise from 7.4% to 7.6% by mid-2025, driven by insufficient job creation to offset a growing active population.
  • Household consumption remains subdued despite easing inflation, with savings rates staying high due to lingering uncertainty.
  • The Bank of France has revised its 2025 GDP growth forecast downward to 0.9% from 1.2%, citing political instability and cautious investment by businesses.
  • Public spending is set to slow under a provisional budget, with further economic impacts dependent on the new government's fiscal policies.
Hero image