The following developments are the main elements of the management report mentioned at I of article L. 451-1-2 of the French Monetary and Financial Code and in article 222-3 of the General Regulation of the AMF, which must include the information mentioned in articles L. 225-100, L. 225-100-2, L. 225-100-3 and in the second paragraph of article L. 225-211 of the French Commercial Code.
Other information corresponding to elements required in the management report is to be found in Section 10.8 “Cross-reference table for the management report.”
The following should be read in conjunction with the consolidated financial statements and related notes. They contain information concerning the Group’s future objectives which imply risks and uncertainties, including, in particular, those described in Chapter 2 “Risks and risk management.”
Global economic growth in 2025 stood at 3.2%, according to the International Monetary Fund, which reflected a slight slowdown from the 3.3% growth rate recorded in 2024. This decline stems mainly from the United States, where growth reached 2% in 2025 after 2.8% the previous year. The eurozone saw moderate growth, rising from 0.9% in 2024 to 1.2% in 2025, while China recorded a slight decline, from 5% to 4.8%. The growth gap narrowed between the US (+2%) and the eurozone (+1.2%). Consumer price inflation declined in the year, falling in the US from 3% to 2.7%, and in the eurozone from 2.4% to 2.1%. 2025 was marked by a trade shock resulting from a significant increase in US tariffs, which reached their highest level since the 1930s. Despite this context, consumer spending remained robust in developed economies and continued to be the main driver of growth. Business investment was led by developments in artificial intelligence, particularly in the US, which promise substantial productivity gains. China continued to face a major real estate crisis and had to adapt to higher US tariffs, while considering a shift in its economic model to boost domestic consumption. Central bank monetary policies, supported by several rate cuts and the end of quantitative tightening in the US, boosted economic activity and corporate earnings growth, particularly in the US, leading to positive trends on stock exchanges, notably on Wall Street, for the third consecutive year. Industrial commodities including copper saw their prices rise, while oil prices fell sharply. Prices for precious metals recorded a significant increase, while agricultural products showed a downward trend.
In the US, economic growth declined by 0.8% compared to 2024, reaching a growth of approximately 2% in 2025. Household consumption remained strong, growing between 2.5% and 3% over the first three quarters of 2025 year-on-year, despite numerous headwinds. The labor market initially deteriorated in 2025 with a sharp decline in job creation. However, at the end of November 2025, the number of people employed in the labor force reached 163.6 million, an increase of 2.1 million compared to December 31, 2024. The unemployment rate remained low at 4.3%, compared to 4.1% at the end of 2024.
As indicated by various psychological indicators, consumer confidence declined and reflected the Trump administration’s falling popularity, the prolonged federal government shutdown (lasting 43 days), challenges related to purchasing power, uncertainty caused by mass layoffs in the civil service and the deportation of undocumented foreign workers. Consumer price inflation remained elevated at 2.7%, but down slightly from 3.1% in 2024, which was mostly due to the impact on final consumer prices of the tariff increases applied since April. The resilience of consumer spending can be explained by the Fed’s decisions to lower interest rates, which helped reduce the cost of credit and support stock markets. Business investment benefited from the momentum generated by artificial intelligence, posting a 3.1% increase over the year according to the IMF. The major technology companies stepped up their investment initiatives, particularly in the construction of data centers and the acquisition of specialized semiconductors. More broadly, the strong financial position of US companies continued to support their investment efforts. Government spending growth slowed in 2025, reaching an estimated growth rate of 0.9%. The slight contraction in government deficit (from 8% to 7.4% according to Bpifrance) had a moderating effect on growth. Foreign trade remained significantly in deficit in 2025. To date, the impact on the current account balance of the tariff increases introduced in spring 2025 remains difficult to quantify. A sharp increase of imports in the first quarter, in anticipation of the tariff increases, was later normalized. The current account balance for 2025 is expected to be close to that of 2024 (4%).
