French economy picks up pace despite political turmoil

BSS
Published On: 30 Oct 2025, 13:30

PARIS, Oct 30, 2025 (BSS/AFP) - The French economy grew faster than expected in the third quarter despite a political crisis over the country's massive debt and deficit, official data showed Thursday.

Gross domestic product in the eurozone's second-largest economy grew by 0.5 percent between July and September compared to 0.3 percent growth in the previous quarter, according to data released by the INSEE statistics agency.

It was better than anticipated, with INSEE having forecast just 0.3-percent growth for the third quarter.

Finance Minister Roland Lescure said it was a "remarkable performance".

"Despite political upheavals and international uncertainties, our companies are investing, exporting, and are propelling the country," he said in a statement to AFP.

Despite an uncertain international environment and tensions with the United States under President Donald Trump, exports picked up in the third quarter, especially in the aeronautics field.

This overall quarter-on-quarter performance suggests the government could meet a desired goal of 0.7 percent year-on-year growth for this year.

The figures come as France's hung parliament is locked in debate over next year's budget, after the legislative chamber toppled two previous prime ministers over cost-cutting measures.

One sticking point is a wealth tax demanded by the Socialists, a swing group in the lower house, who have threatened to topple Prime Minister Sebastien Lecornu's cabinet if their requests are not met.

 

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