France sees weak economic rebound in early ’25

France’s real GDP grew by 0.1 per cent in the first quarter of 2025, rebounding modestly after a 0.1 per cent contraction at the end of 2024, according to data from statistics office INSEE on Wednesday

The slight recovery was underpinned by strong inventory accumulation, which contributed a full percentage point to GDP growth, offsetting weak domestic demand and a significant drag from net exports.

Household consumption fell 0.2 per cent, weighed down by a sharp drop in spending on transport equipment. Gross fixed capital formation was flat, as a continued downturn in construction was balanced by robust investment in information and communication technologies.

Exports dropped 1.8 per cent, driven by declines in transport and chemical products, while imports rose 0.5 per cent due to higher energy and industrial goods purchases. As a result, foreign trade subtracted 0.8 percentage points from GDP.

Meanwhile, household purchasing power per consumption unit edged up 0.1 per cent, supported by a 0.8 per cent rise in gross disposable income, driven by higher pensions and wages. With consumption falling in volume terms, the household savings rate climbed to 18.8 per cent, up from 18.5 per cent in the previous quarter.

Non-financial corporate profit margins declined slightly to 31.8 per cent from 32.0 per cent.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser