French Central Bank Sees Q2 Growth Stagnation, Cuts 2026 Forecast

The Bank of France has released a somber economic outlook, stating that growth is expected to stall in the second quarter following a contraction in Q1. This signals persistent weakness in French economic activity.

The central bank also revised its 2026 growth forecast sharply lower from 0.9% to 0.5%, while simultaneously raising its inflation forecast for that year from 1.7% to 2.5%. This combination of lower growth and higher inflation suggests a more challenging stagflation-like environment ahead.