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France’s economy grew by 0.9 per cent in 2025, slowing from the 1.1 per cent expansion recorded a year earlier, according to figures released by the National Institute of Statistics and Economic Studies (INSEE).
The weaker annual performance reflected a slowdown towards the end of the year, with gross domestic product rising just 0.2 per cent in the fourth quarter, down from 0.5 per cent growth in the previous quarter.
Economists had largely anticipated subdued fourth-quarter growth, citing weak consumer demand and political uncertainty as the government struggled to pass a budget that was expected to entail significant spending cuts.
INSEE data showed household consumption fell sharply at the end of the year, declining 0.6 per cent in December after a 0.3 per cent drop in November.
Earlier this month, Finance Minister Roland Lescure said full-year growth was likely to exceed the government’s initial projection of 0.7 per cent, attributing the expected outcome to continued investment, hiring, production and export activity by businesses.
He described the broader economic outlook as positive.
Despite that, President Emmanuel Macron’s centrist administration continues to face challenges in pushing through its 2026 budget in a divided parliament, raising concerns over its ability to reduce the public deficit to five per cent of gross domestic product.
Prime Minister Sébastien Lecornu is widely expected to invoke constitutional powers on Friday to pass the spending portion of the 2026 budget without a parliamentary vote, a move that could trigger further no-confidence motions from opposition parties.
