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, ra

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.