French Central Bank Cuts 2026 Growth Forecast to 0.5%, Raises Inflation Forecast to 2.5%
France's central bank said economic growth is expected to stall in the second quarter after the economy contracted in the first, and cut its 2026 growth forecast to 0.5% from 0.9%. It also raised its 2026 inflation forecast to 2.5% from 1.7%.
The bank now sees growth of 0.9% in 2027, up from 0.8% previously, and 1.2% in 2028, unchanged. The revisions point to a weaker near-term activity outlook even as price pressures are seen running higher next year.
From the sources (5 posts)
@financialjuiceFrench Central Bank sees growth stalling in Q2 after Q1 contraction.
@financialjuiceFrench central bank cuts 2026 growth forecast to 0.5% from 0.9% previously.
@financialjuiceFrench Central Bank forecasts 2027 growth of 0.9% (0.8% previously), 2028 of 1.2% (unchanged).
@financialjuiceFrench central bank sees 2026 inflation of 2.5% (1.7% previously).
@firstsquawkTHE FRENCH CENTRAL BANK SAID ECONOMIC GROWTH IS EXPECTED TO STALL IN THE SECOND QUARTER AFTER THE ECONOMY CONTRACTED IN Q1, SIGNALING CONTINUED WEAKNESS IN ACTIVITY. THE CENTRAL BANK CUT ITS 2026 GROWTH FORECAST TO 0.5% FROM 0.9% AND RAISE