French Economy to Experience Sluggish Start to 2025, According to Insee
The National Institute for Statistics and Economic Studies (Insee) predicts a gloomy start to the year for the French economy. The Gross Domestic Product (GDP) is expected to grow by only 0.2% in the first and second quarters of 2025, following a forecasted zero growth in the last quarter of 2024. This assessment reflects a fragile dynamic marked by weak domestic demand and sluggish investments.
During a press conference, Dorian Roucher, head of the economic trends department at Insee, described a "bleak landscape" reflected in surveys of households and businesses. According to the report titled "Activity Suspended Pending a Recovery in Confidence," growth would be 0.5% by the end of June, a pace insufficient to revitalize the French economy.
To reach the government's forecast of 1.1% growth for 2025, the Insee estimates that the GDP would need to grow by 0.8% in the last two quarters of the year. A scenario deemed unlikely, unless there is a rapid improvement in confidence, a rebound in household consumption, and a lifting of factors hindering investment.
