Italy, France economies report modest growth in Q1 2025

France's economy experienced modest growth of 0.1% in the first quarter of the year, matching analyst expectations and following a slight contraction in the previous quarter. This expansion was primarily driven by companies rebuilding inventories, which offset the negative impact of stagnant domestic demand and weak foreign trade. Household consumption remained unchanged, and business investment declined slightly, while foreign trade subtracted from overall growth due to higher imports and falling exports. Economists note that the outlook for 2025 is increasingly uncertain, influenced by global trade tensions and domestic fiscal constraints, while political instability adds further risk. The French government's growth target for the year remains at 0.7%, though experts express caution given the challenging environment.