French economy shrinks 0.1% in first quarter amid weak demand

France's economy contracted by 0.1% in the first quarter of the year, driven by weak domestic demand and declining exports. The figures highlight growing economic challenges facing one of Europe's largest economies.

France's economy shrank by 0.1% in the first quarter of 2025, new figures reveal, as the country grapples with sluggish consumer spending and a notable drop in export activity.

The contraction marks a concerning development for the eurozone's second-largest economy, which has been struggling to maintain momentum amid a challenging global trade environment and subdued domestic confidence.

Weak internal demand has been a persistent drag on French economic performance, with households and businesses showing little appetite for spending. At the same time, export volumes have declined, further eroding growth prospects for an economy heavily reliant on international trade.

The data adds pressure on French policymakers to consider stimulus measures or structural reforms to revive growth. Analysts have warned that without a meaningful recovery in both consumer spending and export competitiveness, France risks slipping into a prolonged period of economic stagnation.