French Economy Shows Weak Q1 2025 Growth Amid Falling Exports
Press Hub UCapital
Share:
France’s GDP grew by just 0.1% in the first quarter of 2025, confirming the preliminary estimate and slightly recovering from the -0.1% contraction seen in Q4 2024. On an annual basis, growth was revised down to 0.6%, from the initial reading of 0.8%.
Household consumption declined by 0.2% quarter-on-quarter, reversing the modest 0.1% increase seen at the end of 2024. The drop was largely driven by a sharp 4.0% fall in spending on transport goods. Gross fixed capital formation remained flat for the second consecutive quarter.
Exports saw a steep decline of 1.8%, after rising 0.7% in Q4 2024, primarily due to reduced sales of transport equipment and chemicals. Meanwhile, imports rose by 0.5%, supported by higher purchases of energy (notably gas and electricity) and industrial goods such as metals, pharmaceuticals, and jewelry.
As a result, net trade made a strongly negative contribution to GDP growth, subtracting 0.8 percentage points in Q1 2025.
Household consumption declined by 0.2% quarter-on-quarter, reversing the modest 0.1% increase seen at the end of 2024. The drop was largely driven by a sharp 4.0% fall in spending on transport goods. Gross fixed capital formation remained flat for the second consecutive quarter.
Exports saw a steep decline of 1.8%, after rising 0.7% in Q4 2024, primarily due to reduced sales of transport equipment and chemicals. Meanwhile, imports rose by 0.5%, supported by higher purchases of energy (notably gas and electricity) and industrial goods such as metals, pharmaceuticals, and jewelry.
As a result, net trade made a strongly negative contribution to GDP growth, subtracting 0.8 percentage points in Q1 2025.