France’s Q2 GDP Growth Quickens on Inventory Boost

2025-07-30 05:51 By Farida Husna 1 min. read

The French economy grew by 0.3% in Q2 2025, up from 0.1% in Q1 and surpassing market expectations of 0.1%, according to flash estimates.

This marked the strongest expansion since Q3 2024, largely driven by a 0.5 percentage point boost from inventory accumulation.

In contrast, final domestic demand was flat, and net trade dragged on growth.

Household consumption edged up 0.1%, rebounding from a 0.3% decline in Q1, supported by increased goods consumption—helped by the Easter holidays and favorable weather—and a pickup in services, particularly in accommodation and catering.

Fixed investment contracted further, falling 0.3% after a 0.1% decline in Q1, weighed down by persistent weakness in construction and a drop in GFCF in manufactured goods.

Exports rose 0.2% (vs -1.1% in Q1) as firms accelerated shipments to the US ahead of impending tariffs.

Imports jumped 0.8% (vs 0.3% in Q1), driven by a sharp rebound in refining activity.

On an annual basis, GDP rose 0.7%, up from 0.6% in Q1.



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