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French economy grew 0.2% in second quarter

Created at 30 Jul · 5:46 AM1 source↑ Market-relevant
IN SHORT

France's economy expanded by 0.2% in the second quarter, rebounding from a 0.1% contraction in the first quarter. This growth was driven by increased household spending and exports, according to official data.

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Key Numbers

0.2%second quarter GDP growth
0.1%first quarter GDP contraction
0.7%revised 2026 growth forecast
0.9%previous 2026 growth forecast

Who's Involved

Reuters
reported official data on French economic growth
INSEE
official statistics agency for France
French economy grew 0.2% in second quarter

↳ Why This Matters

The rebound in French economic growth signals resilience in the Eurozone's second-largest economy, though a reduced overall growth forecast for 2026 suggests potential headwinds.

Key facts

  • France's economy grew by 0.2% in the second quarter.
  • This marks a rebound from a 0.1% contraction in the first quarter.
  • The growth was supported by increased household spending and exports.
  • France's overall growth forecast for 2026 was reduced to 0.7%.

The French economy experienced a modest expansion of 0.2% in the second quarter, according to official data released on Thursday. This growth follows a contraction of 0.1% in the preceding quarter, indicating a rebound for the Eurozone's second-largest economy. The pickup was attributed to increased household spending and a rise in exports.

Earlier in July, France revised its overall growth forecast for the entirety of 2026 downwards, projecting 0.7% growth, a decrease from the previously anticipated 0.9%.

According to INSEE, France's national statistics institute, real gross domestic product (GDP) accelerated moderately in the second quarter of 2025, rising by 0.3% after a 0.1% increase in the previous quarter. Household purchasing power per consumption unit saw a slight rebound of 0.2% after a 0.1% decrease. The household savings rate increased to 18.9% of disposable income. However, the profit margin of non-financial corporations continued to decline for the third consecutive quarter, reaching 30.7%.

Frequently asked questions

The French economy contracted by 0.1% in the first quarter.

Growth was driven by a pickup in household spending and exports.

France's overall growth forecast for 2026 has been cut to 0.7% from 0.9%.

What Happens Next

01Monitor future GDP and inflation data releases from INSEE.
02Observe the impact of revised 2026 growth forecasts on fiscal policy.

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Cadence

How It Developed

The French economy grew by 0.2% in the second quarter.
This follows a 0.1% contraction in the first quarter.
Household spending and exports boosted the economy.
France cut its overall growth forecast for 2026 to 0.7% from 0.9%.

Sources

T1
French economy grew 0.2 percent in second quarterReuters
T2
French Economy Rebounds With 0.2% Growth in Second Quarterbloomberg.com
T2
Live news: French economy grows faster than expected in 2nd quarterft.com
T2
In Q2 2025, GDP accelerated moderately (+0.3%) and household ... - INSEEinsee.fr

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