France’s economic growth has surpassed expectations in the third quarter of 2025, registering a significant increase of 0.5% compared to the previous quarter. This information was released by the National Institute of Statistics and Economic Studies (Insee) on Thursday. Despite ongoing political and budgetary uncertainties, the French economy has exhibited resilience.
Economic Performance Overview
The economy’s performance exceeds initial forecasts from Insee, which had predicted a modest growth of 0.3% from July to September. This follows growth rates of 0.1% in the first quarter and 0.3% in the second quarter of 2025. The sustained growth is a positive sign and suggests France may exceed the government’s projected growth rate of 0.7% for the year.
Key Economic Indicators
- Third Quarter Growth: 0.5% (July to September 2025)
- Previous Quarter Growth: 0.3%
- First Quarter Growth: 0.1%
- Government Growth Projection for 2025: 0.7%
- Growth Acquisition Rate: 0.8% as of September 2025
Roland Lescure, the Minister of Economy, praised the performance, emphasizing the need for a swift budget approval to maintain business and consumer confidence. The budget for 2026 is currently under intense debate in a National Assembly lacking a clear majority, with the threat of government censure looming.
Factors Contributing to Growth
The third-quarter growth has been largely driven by a substantial increase in exports, particularly in the aerospace sector. Additionally, a decline in imports has contributed positively, with the foreign trade adding 0.9 points to GDP growth.
- Exports: Accelerated growth, particularly in the aerospace industry.
- Imports: Decreased, contributing positively to GDP growth.
- Investment Growth: Increased by 0.4%, with business investments up by 0.9%.
- Household Investments: Decreased by 0.4%.
Household consumption, a traditional growth driver, has seen a minor increase of 0.1%. This continues at the same pace as the previous quarter. While consumption of food has decreased, there has been a rebound in energy consumption, balancing the overall household spending.
Outlook for the Future
The ongoing discussions in the National Assembly revolve around tax reforms, particularly concerning high-income earners. The Socialist Party is pushing for tax increases as part of their support for the government’s budget plan following the suspension of the pension reform.
Overall, the economic outlook for France remains cautiously optimistic. The performance in the third quarter highlights the resilience of the economy amid external challenges and internal political dynamics.
