FX.co ★ France Q4 GDP Growth Confirmed at 0.2%

France’s economy grew by 0.2% quarter-on-quarter in Q4 2025, down from 0.5% in Q3 and in line with preliminary estimates. This was the weakest quarterly expansion in three quarters, reflecting a slowdown in several key components. Government consumption eased to 0.2% from 0.7% in the previous quarter, while growth in gross fixed capital formation cooled to 0.3% from 0.8%, pressured by a decline in manufactured products (-1.0% vs 0.5%) and a moderation in construction (0.4% vs 0.6%). Changes in inventories also weighed on activity, subtracting 0.8 percentage points from overall GDP growth.

By contrast, household consumption strengthened, rising 0.4% in Q4 after a 0.1% increase in Q3. This pickup was supported by higher spending on goods (0.5% vs 0.1%) and services (0.2% vs 0.1%). Net trade also made a strong positive contribution, adding 0.7 percentage points to GDP, as exports increased by 1.0% (though less than the 3.1% recorded in Q3) and imports fell by 1.1% after a 1.4% rise in the previous quarter.

On a year-on-year basis, GDP expanded by 1.2% in Q4 2025, revised up from an initial estimate of 1.1% and marking the strongest annual growth rate since Q1 2024, up from 1.0% in Q3. Over the full year 2025, the French economy grew by 0.9%, slowing from a 1.1% expansion in 2024.