Banca Franţei reduce prognoza de creştere economică la doar 0,4%

France's economy is expected to see modest growth this year due to reduced consumer spending and limited corporate investments amid uncertainties. The Bank of France has lowered its growth forecast for 2026 to 0.4%. Consumer and company caution is impacting domestic demand, while higher interest rates complicate financing. The government and INSEE have also revised their forecasts downward. Household purchasing power is projected to decline this year, but improvements are expected in the following years. Economic growth is anticipated to accelerate to 0.9% in 2027 and 1.2% in 2028, although risks remain, particularly from geopolitical tensions. Inflation is expected to drop below 2% by 2027, with unemployment projected to reach 8.4% by the end of this year.