The Banque de France has revised its economic forecast, lowering the country’s gross domestic product (GDP) growth projection for 2025 to 0.7 percent, down from the 1.1 percent estimate made in December 2024. The French central bank announced the adjustment on Wednesday, citing weaker-than-expected economic activity at the end of last year.
According to the Banque de France, the French economy is expected to maintain a moderate pace in the first half of 2025 before gradually accelerating later in the year. Despite the slowdown, the central bank emphasized that growth would remain positive overall. The latest assessment reflects ongoing economic challenges, including subdued domestic demand and external uncertainties.
The downgrade follows a 1.1 percent GDP growth rate in 2024, indicating a further deceleration in the country’s economic momentum. Economic analysts suggest that factors such as inflationary pressures, geopolitical risks, and weakened consumer confidence may have influenced the downward revision. The French central bank’s outlook aligns with broader concerns about slower economic expansion across the eurozone.
Economic slowdown continues with weaker growth projections
While the Banque de France remains cautious in its projections, it expects gradual improvement in economic activity in the latter half of 2025, driven by potential recovery in consumer spending and investment. However, the pace of growth remains below previous expectations. The revised forecast comes amid ongoing discussions over France’s economic policy measures, including potential fiscal adjustments and monetary policy responses.
The French central bank is expected to monitor macroeconomic conditions closely as it navigates evolving economic trends. This latest revision underscores the challenges facing the French economy, highlighting the importance of policy measures to support growth and stability amid global uncertainties. – By EuroWire News Desk.