Prior +0.5%GDP +1.1% vs +1.2% y/y expectedPrior +0.9%The headline reading meets estimates as the French economy grew slightly in the final quarter of last year. Overall, French GDP expanded by 0.9% in 2025 and that’s a slight decline from the 1.1% growth seen in 2024.Looking at the breakdown for the year, household consumption posted a modest growth of 0.4% on the year with the final quarter coming in strong as well with a 0.3% jump. Total government expenditure was up 1.7% on the year with imports up 2.9% while exports were up 1.4% in terms of overall growth contributions.In terms of actual percentage contributions, internal demand excluding inventory changes accounted for 0.7% of GDP growth. Meanwhile, inventory changes itself also accounted for 0.7%. The offsetting line was net foreign trade, which subtracted 0.5% from GDP.Here’s the full breakdown:
This article was written by Justin Low at investinglive.com.
💡 DMK Insight
French GDP growth hitting 0.9% is a mixed bag for traders: here’s why. While the headline figure meets expectations, the decline from 1.1% in 2024 raises questions about the sustainability of this growth. For forex traders, this could mean a cautious approach to EUR/USD pairs, especially if the market reacts negatively to the slower growth rate. If economic indicators continue to show weakness, we might see the euro under pressure against the dollar, particularly if the Fed maintains a hawkish stance. Keep an eye on the 1.05 support level for EUR/USD; a break below could trigger further selling. On the flip side, if the French economy shows resilience in upcoming reports, it could bolster the euro. Traders should monitor upcoming employment data and consumer sentiment reports for clues on whether this growth trend can hold. The real story is whether this slowdown is a temporary blip or a sign of deeper economic issues. Watch for volatility around these releases, as they could impact not just the euro but also related assets like European equities.
📮 Takeaway
Watch the 1.05 support level for EUR/USD; a break could signal further downside as traders react to the slower French GDP growth.






