France Q4 GDP Contraction Confirmed at 0.1%

2025-02-28 10:23:00

The French economy contracted 0.1% in Q4 2024, confirming preliminary estimates and reversing a 0.4% expansion in Q3.

This marks the first contraction since Q1 2023, partly due to the post-Olympics slowdown following the economic boost from the Paris Olympic and Paralympic Games.

Household consumption growth slowed (+0.3% vs. +0.6% in Q3), as service consumption declined (-0.1% vs. +0.8%) while goods consumption rose at a weaker pace (+0.2% vs. +0.4%).

Meanwhile, fixed investment continued to decline (-0.1% vs. -0.7%), led by a sharper drop in construction investment.

Net trade had a neutral impact on GDP, with exports and imports both rising 0.4%.

Inventory changes weighed on growth, subtracting 0.3 percentage points (vs. a +0.3-point contribution in Q3).

On an annual basis, the economy expanded 0.6%, slightly below the flash estimate of 0.7%, marking the slowest growth since the Q4 2020 contraction.

For the full year, GDP grew 1.1%, matching 2023's pace.