Overview

• France's GDP grew by 0.1% in Q1 2025, following a 0.1% contraction in Q4 2024 attributed to post-Olympic adjustments.
• Household consumption of goods fell by 1% in March, hitting its lowest level since 2014 outside of the COVID-19 period.
• Total investments, including from businesses, households, and public entities, declined by 0.2% during the quarter.
• Net exports dragged GDP down by 0.4 points due to falling exports and rising imports, partially offset by a 0.5-point boost from inventory changes.
• Despite ongoing political instability and fiscal tightening, the French government and Banque de France project 0.7% growth for 2025.