French development up 0.2% in fourth quarter 2025 and 0.9% for the entire yr, in step with expectations | EUROtoday

The French gross home product (GDP) elevated by 0.9% over the yr 2025, after development of 0.2% within the fourth quarter, the National Institute of Statistics and Economic Studies (Insee) introduced on Friday January 30 in a primary estimate. GDP slowed within the remaining months of the yr after strong development of 0.5% within the third quarter. Annual GDP is in step with expectations, after 1.1% in 2024 and 1.6% in 2023.

“Our economic results are encouraging”welcomed the Minister of Economy and Finance, Roland Lescure, on January 23: “everything points to growth last year probably closer to 0.9% than the 0.7% we expected”.

Further decline in family consumption

French family consumption expenditure on items confirmed an additional decline in December, of 0.6% in quantity, after the 0.3% decline in November, due particularly to a transparent decline in consumption of manufactured items. On the entire 4^e quarter of 2025, family consumption of products accelerates (+ 0.4%, after + 0.1% in 3^e quarter) : “consumption of manufactured goods is increasing again, energy consumption is slowing down a little and food consumption is stable”particulars INSEE.

At the tip of 2025, the economic system, in view of the month-to-month surveys already revealed by INSEE, relied extra on companies than on family consumption, which remained fairly lackluster, whereas their financial savings reached nearly 19% of their disposable earnings. If the yr ended higher than anticipated, “we owe this largely to companies which have continued to invest, recruit, produce and export”famous the Minister of the Economy.

At the beginning of 2026, for which INSEE at the moment forecasts 0.3% development in every of the primary two quarters, budgetary uncertainty is about to be definitively lifted, with the virtually assured adoption of the finance invoice by a remaining attraction to 49.3 within the National Assembly on Friday, after the rejection of the textual content within the Senate on Thursday.

On the opposite hand, respectable development solely very partially resolves the nation’s large public finance downside. The authorities, which hoped to undertake a price range based mostly on a public administration deficit of 4.7% of GDP, needed to make compromises, notably with the Socialist Party, which is able to carry the deficit to five%, after 5.4% in 2025.

Already, the Moody’s company has doubted it this week, predicting a deficit remaining at 5.2% this yr. “It is urgent to act, to vigorously reduce our public deficit” − the worst within the euro zone −, “to control our spending and stabilize our public debt”the third within the zone, recalled Thursday the interim president of the Court of Auditors, Carine Camby.