French Economic Outlook Remains Downbeat

France's economic outlook is downbeat due to stalled domestic demand and a deteriorating labour market. GDP growth is projected to be weak at 0.4% in 2026, making fiscal consolidation difficult.

Key Takeaways

• 1.French business sentiment remains subdued and domestic demand is stalling, pointing to weak near-term economic activity.
• 2.Labour market deterioration is significant, with the employment climate indicator reaching its lowest level since 2013.
• 3.French GDP growth is forecast at 0.4% for 2026, creating fiscal consolidation challenges for the government.

Table of Contents

• French domestic demand remains stalled
• Limited scope for a rebound

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