Bank of France Forecasts Growth Amid Social Instability
The Bank of France expects moderate economic growth in late 2026 despite warnings of high uncertainty caused by political and social unrest.
The Bank of France expects the French economy to return to moderate growth during the fourth quarter of 2026. A monthly survey of 8,500 companies indicates that activity in the services and industry sectors advanced in October, with further expansion anticipated for November.
Despite these gains, the central bank warned of unusually high uncertainty driven by fiscal, political, and social instability. This volatility is linked to protests and unrest that resulted in looting during October. While industry and services are expanding, the construction sector remains near stagnation.
Business leaders expressed increasing concern over the current social and political climate, which the central bank suggests could temper the projected economic recovery.
