French central bank trims growth outlook as demand softens
14 Articles
14 Articles
France's Central Bank Cuts 2026 Growth View to 0.4% as Households Pull Back
The Banque de France cut its 2026 GDP growth forecast to 0.4% from 0.5%, citing weak consumption, soft investment and energy price shocks from Middle East tensions. Chief economist Xavier Debrun stressed resilience over decoupling. Growth should rebound to 0.9% in 2027 and 1.2% in 2028 as purchasing power recovers.
This slight downward revision is due in particular to lower growth in the first quarter than expected.
Despite this downward revision, the institution believes that the French economy is a "resisting economy". Low household consumption, the loss of dynamism of private investment and the small contribution of foreign trade weigh on the country's activity.
While the INSEE points to a "drop-out", the Central Bank insists on the "resilience" of our economy.
The Bank of France published its new projections on Tuesday 15 September. The institution now forecasts 0.4% growth in 2026, but insisted on Tuesday 15 September on the resilience of the French economy.
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