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19 March 2025 | Euro

Rising trade tensions and political instability in France slow its GDP growth

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Rising trade tensions and political instability in France slow its GDP growth

Global trade tensions and political uncertainty in France keep putting the European country's economy under pressure. Insee expects French GDP to expand by about 0.1% in the first three months of 2025 after it contracted similarly last quarter. In both cases, analysts predicted a 0.1% rise, according to Bloomberg.

From April to June, the second largest economy in Europe is expected to expand by 0.2%, Insee reported. The new US president's unpredictable tariff policies and France's domestic problems are slowing the country's GDP growth. However, in order to meet the 0.9% target for 2025, the economic growth should accelerate to at least 0.6% in the third and fourth quarters, Bloomberg said.

Elena Berseneva MarketCheese

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