Insee reported a 0.5% rise in French GDP for the third quarter of 2025, exceeding forecasts. This puts France on track for annual growth above 0.7%. Economy Minister Roland Lescure called the performance 'remarkable' amid political uncertainties.
From July to September 2025, French gross domestic product (GDP) rose 0.5% compared to the previous quarter, according to the National Institute of Statistics and Economic Studies (Insee), which had forecasted 0.3%. Announced on October 30, this figure exceeds expectations and brings the acquired growth to 0.8% by end-September, potentially surpassing the government's 0.7% target for the year.
Household consumption remained stable, with a decline in food offset by an energy rebound and accelerated spending on manufactured goods. The economy benefited from an aeronautics upturn, particularly Airbus's increased deliveries in September, seen as a durable trend by BNP Paribas economist Stéphane Colliac, potentially adding 0.3 to 0.4 percentage points of growth in a full year. Another driver is the ramp-up in defense efforts amid the Russian threat.
Economy Minister Roland Lescure hailed 'a remarkable performance,' adding: 'Despite political turbulence and international uncertainties, our companies invest, export, and advance the country.' He stressed the need for swift budgeting: 'The rapid adoption of a budget that preserves the confidence of businesses and households will be key to maintaining this momentum.'
Compared to neighbors, France outperforms Germany, which rebounded 0.1% after a 0.2% drop, while Spain reported 0.6% and aims for 2.7% annually. The European Central Bank's rate cuts support household investment, especially in housing, as business investment recovers. Yet, political uncertainty has led to sovereign rating downgrades by S&P and Fitch, and a negative outlook from Moody’s. Banque de France Governor François Villeroy de Galhau warns of a risk of 'progressive suffocation' for the country.