Outgoing Banque de France governor Villeroy said the bank will lower its 2026
growth forecast later this month after a disappointing start to the year and
ongoing Middle East tensions. The bank will publish multiple scenario forecasts
reflecting high uncertainty; the 2026 projection will be revised down from March
but remains positive in most scenarios. Revised data last week showed an
unexpected Q1 contraction, and indicators suggest rising oil prices are weighing
on activity and confidence, raising concerns about France's resilience to a war
involving Iran.
