ING
June 23, 2026
French Economic Outlook Remains Downbeat
Macro ThematicMacro Economic IndicatorsIndustrials
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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Authors
Charlotte de Montpellier
Themes
Economic StagnationFiscal Consolidation Risk
Regions
EuropeFrance
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