France's Economy Grows 0.2% in Q4 Amid Political Uncertainty

The Bank of France reports a 0.2% GDP growth in Q4 2025, driven by aerospace and defense sectors. However, political uncertainty over the 2026 budget looms large.

Insights:
The Bank of France released its latest business sentiment survey on January 13, 2026, indicating that France's economy grew by 0.2% in the fourth quarter of 2025. This modest growth was primarily driven by robust performances in the aerospace and defense sectors. However, the survey also highlights looming challenges, with industrial activity expected to slow in January due to declining aerospace production and limited order book visibility.
A French flag flies at the entrance of the Bank of France "Banque de France" building in Paris, France, on April 9, 2025. REUTERS/Abdul Saboor
A French flag flies at the entrance of the Bank of France "Banque de France" building in Paris, France, on April 9, 2025. REUTERS/Abdul Saboor
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