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France GDP rebounds in Q2, but growth momentum remains sluggish
Q2 domestic demand contributed +0.1% to growth after -0.2% in Q1, while the full-year 2026 running rate is +0.5% versus +0.9% in 2025.
France’s economy rebounded in the second quarter, with a modest recovery in domestic demand helping lift growth, according to Forexlive. The outlet said domestic demand excluding inventories contributed +0.1% to GDP growth after a -0.2% decline in Q1.
Household consumption also improved, rising +0.2% in Q2 after falling -0.3% in Q1. Forexlive added that foreign trade contributed positively in Q2, adding +0.6% versus -0.8% in the prior quarter, though inventories dragged growth.
Changes in inventories weighed on the quarter, with a -0.6% contribution after +0.9% in Q1. Even with the Q2 improvement, the report pointed to slower momentum going into the second half, with the 2026 GDP running rate at +0.5%.
Forexlive noted the running rate is softer than the +0.9% seen across all of 2025, and said domestic demand is particularly weaker this year at +0.2% compared with +0.5% in 2025.
The outlet also flagged risks to demand conditions in the second half, citing continued negative pressure from the Middle East conflict, alongside higher energy prices. It added that the key question will be whether demand can hold up under tighter monetary policy and the potential for additional price pressures.