Reunion's economy grew by 1.1% in real terms in 2025, outpacing metropolitan France (+0.8%) for the second consecutive year. These figures, published by INSEE and CEROM on July 9, 2026, reveal a rebound driven by public spending and household consumption — but a performance that still masks structural unemployment at 18%.
GDP Rebounds, Carried by Public Spending
According to the Comptes Economiques Rapides pour l'Outre-mer (CEROM), Reunion's GDP reached +1.1% in 2025, up from +0.5% in 2024. Public spending was the primary engine, rising 2.5% in volume and contributing 1.1 percentage point to growth. Household consumption (+1.2%) and investment (+1.6%) provided complementary positive contributions.
Inflation continued to ease: 1.4% annual average in 2025, down from 2.8% in 2024, and slightly above the metropolitan rate of 0.9%. Household gross disposable income grew by +1.5% in real terms, a performance well above the metropolitan result (-0.4%).
Trade Expanding on Both Sides
Exports from Reunion grew by +3.6% in 2025, against +3.5% for imports. A slightly improved trade balance reflecting the strengthening of certain local sectors — even though Reunion remains structurally import-dependent.
The Reunion Paradox: Growth Without Employment
Behind these encouraging numbers persists a paradox: the unemployment rate remains at 18% in Q1 2026, double the national average. Salaried employment grew by just +0.4% year-on-year. Reunion's growth still relies too heavily on public expenditure and too little on private-sector job creation.
Why It Matters
Reunion demonstrates real economic resilience in a subdued national context. But the current trajectory — growth driven by public spending, high structural unemployment — raises questions about the model's medium-term sustainability. The challenge for 2026 is to convert this growth momentum into lasting private-sector jobs, particularly in digital industries, the blue economy, and high-value tourism.
Source: INSEE/CEROM, Comptes Economiques Rapides pour l'Outre-mer, published July 9, 2026.