PARIS, Aug. 29 (Xinhua) -- France's gross domestic product (GDP) rose 0.3 percent in the second quarter (Q2) of 2025, after a 0.1 percent increase in Q1, the National Institute of Statistics and Economic Studies (INSEE) said Friday.
Household consumption was stable. A drop in energy spending was offset by higher spending on food and accommodation services. Government consumption rose slightly. Final domestic demand excluding inventories contributed 0.1 percentage points to GDP, after a negative contribution in Q1.
Foreign trade again weighed on growth, subtracting 0.3 points after -0.5 points in Q1. Exports rebounded, driven by pharmaceuticals, but imports rose faster, lifted by pharmaceuticals, transport equipment and refinery products.
In June, INSEE forecast GDP growth of no more than 0.6 percent for 2025. Political uncertainty is expected to further pressure activity in the second half.
ING Think, the economics and research platform of Dutch lender ING, said the likely fall of the government would weigh on the economy. "With only 0.8 percent GDP growth expected this year, the economy was already weak, and the political crisis adds a new layer of uncertainty," it said.
"Drafting and passing a 2026 budget will become even harder, delaying fiscal consolidation and potentially worsening France's debt trajectory," ING Think added.
