France's Central Bank to Lower 2026 Growth Forecast Later This Month Amid Q1 Contraction

According to Jin10, on June 1, France's central bank will lower its 2026 growth forecast later this month due to weaker-than-expected economic contraction in the first quarter. Central Bank Governor Villeroy stated that multiple scenario forecasts will be released given elevated uncertainty, with 2026 growth predictions revised downward compared to March estimates, though most scenarios still project positive growth.

Oil price increases are increasingly weighing on economic activity and confidence, as data showed France's economy unexpectedly contracted at the start of 2026 amid ongoing Middle East tensions.