Headlines
French economy grew 0.3% in Q2, beating forecasts
Published by Global Banking and Finance Review
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 30, 2025
2 min readLast updated: January 22, 2026
The French economy grew 0.3% in Q2, surpassing forecasts due to increased household spending. This growth indicates resilience amid economic pressures.
By Sudip Kar-Gupta
PARIS (Reuters) -The French economy grew 0.3% in the second quarter, beating forecasts, as a rebound in household spending boosted the euro zone's second-biggest economy, according to official data published on Wednesday.
Analysts polled by Reuters had forecast 0.1% growth for the preliminary Q2 GDP. The growth of 0.3% also showed an improvement from France's Q1 GDP growth of 0.1%.
France is facing relatively sluggish economic growth and pressures from its high deficit.
Prime Minister Francois Bayrou wants to reduce the budget deficit from 5.4% of GDP this year to 4.6% in 2026, ultimately targeting the EU's 3% fiscal deficit limit by 2029.
Finance Minister Eric Lombard told RTL Radio that the preliminary Q2 GDP growth figures were nevertheless "good news".
He added they also showed that the French economy was faring relatively well given the pressures from the framework trade tariffs deal between the European Union and the United States.
"This 0.3 percent shows we are resisting relatively well, given the situation," said Lombard.
(Reporting by Sudip Kar-Gupta; Editing by Michael Perry and Andrew Heavens)
The French economy grew by 0.3% in the second quarter, which was higher than the forecasted growth of 0.1%.
Prime Minister Francois Bayrou aims to reduce the budget deficit from 5.4% of GDP this year to 4.6% by 2026, ultimately targeting the EU's 3% fiscal deficit limit by 2029.
A rebound in household spending contributed significantly to the growth of the French economy in Q2.
Finance Minister Eric Lombard described the preliminary Q2 GDP growth figures as 'good news' and indicated that the economy is performing relatively well despite external pressures.
The French economy is experiencing sluggish growth and is under pressure from a high budget deficit and trade tariffs between the EU and the United States.
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