Successfully investing in France

The economic situation in France is marked by moderate growth and persistent budgetary challenges. After GDP growth of 1.1 percent in 2024, growth is expected to slow to 0.8 percent in 2025, due to fiscal adjustments and still-fragile domestic demand. Inflation, meanwhile, continues to fall, reaching 2.4 percent in 2024 and stabilising below 2 percent in 2025, thanks to lower energy and commodity prices. 

However, France faces a high public deficit, estimated at 6.2 percent of GDP in 2024, before falling to 5.3 percent in 2025. Public debt continues to grow, reaching 115.3 percent of GDP in 2025, necessitating fiscal consolidation measures. 

Against this backdrop, France is banking on innovation and the regulation of artificial intelligence to strengthen its economy. In February 2025, Emmanuel Macron presented the Charter of Paris for AI of General Interest, aimed at ensuring the ethical and transparent development of AI. This initiative focuses on data protection, the impact on employment and technological equity, while encouraging innovation and international cooperation.

The economic outlook is being hurt by political uncertainty from the recent parliamentary elections, which didn't produce a clear political majority in parliament and are limiting the government's ability to make the economic reforms needed to reduce the budget deficit and debt levels.

The investment climate in France in 2025 is marked by a dynamic recovery after a period of economic uncertainty. Investment volumes rose sharply in the first quarter, reaching 3.4 billion euros, an increase of more than 60 percent on the previous year. This trend was driven by major transactions and renewed investor confidence. 

The country is betting on several strategic sectors to ensure its economic and technological development in 2025. Clean energy and the ecological transition take centre stage, with accelerating investment in renewable energies and low-carbon technologies to reduce the environmental footprint of industry. Real estate and infrastructure remain a key lever for economic dynamism, with plans for urban modernisation and the development of new industrial estates. The advanced manufacturing industry, particularly in the aerospace and automotive sectors, will benefit from increased support to strengthen the country's competitiveness and industrial sovereignty. 

All these areas are at the heart of the France 2030 plan, which will mobilise 54 billion euros over five years to accelerate innovation, support emerging businesses and finance the decarbonisation of industries. This ambitious plan aims to position France as a technological and environmental leader on a global scale.

In a recent survey released by EY in May, 2025, for the sixth consecutive year, France remains the country with the highest level of international investment in 2024, although this performance is tempered by its third place ranking in terms of jobs created. In the eyes of foreign investors, industrial attractiveness suffers from labor costs, but also from a lack of land, energy competitiveness, robotization, innovation, and agility. Added to these irritants is the weakness of French growth, marked by sluggish household consumption.

In 2025, France is continuing to strengthen its policy on critical raw materials and the energy transition. With the adoption of the Critical Raw Materials Act at European level, French companies must now comply with new obligations in terms of supply chain management and recycling of strategic materials. These regulations aim to secure access to essential resources for the technology and energy industries, while reducing dependence on imports. France is also stepping up the development of renewable energies, notably with the introduction of the French Energy and Climate Strategy (SFEC), which sets ambitious targets for the period 2024-2033. These measures are part of a drive to guarantee energy sovereignty and meet environmental challenges, while promoting innovation and the competitiveness of French companies on the global market.