Finance
France on course for fourth quarter growth of 0.2%, central bank says
Published by Global Banking and Finance Review
Posted on December 9, 2025
Last updated: January 8, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 9, 2025
Last updated: January 8, 2026
PARIS, Dec 9 (Reuters) - France's economy is set to notch up modest growth in the final quarter of the year thanks to firm industrial activity, despite domestic political uncertainty, the Bank of France said on Tuesday in its latest business sentiment survey.
The euro zone's second-biggest economy is set to grow 0.2% in the fourth quarter, down from 0.5% in the previous three months, the central bank forecast.
That would leave France in good stead to achieve, if not surpass, the 0.8% annual growth expected by the government this year as the economy proves relatively resilient in the face of recurring political instability.
France has faced recurring political crises, with minority governments struggling to pass crucial budget legislation, since President Emmanuel Macron lost his majority in a snap election last year.
The central bank's monthly survey, which polled executives from roughly 8,500 companies between November 26 and December 3, pointed to continued economic momentum in November, driven largely by industrial activity outperforming its long-term average for the sixth consecutive month.
The survey found that the upswing in industry was stronger than anticipated, fuelled by a surge in production of computer, electronic, and optical products.
Meanwhile, the agro-food and automotive sectors showed signs of revival, adding breadth to the recovery. The resilience in industry contrasted with more subdued trends in services and construction, which saw little change during the same period.
Looking ahead to December, businesses expect growth to persist in industry, albeit at a slower pace, while services and building activity are forecast to remain largely flat.
(Reporting by Leigh Thomas; Editing by Sharon Singleton)
Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in order to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
Economic growth is the increase in the production of goods and services in an economy over a period of time, typically measured as the percentage increase in real GDP.
A business sentiment survey is a tool used to gauge the confidence of business executives regarding the economic outlook, which can influence investment and hiring decisions.
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