Bank of France revises growth forecasts downwards

The Bank of France has predicted that the French economy will weaken sharply next year in the face of the energy crisis, but will regain some of the lost ground in 2024. The Bank of France, which expects the French economy to grow by 2.6 percent this year, predicted that growth would slow to 0.3 percent in 2023. The bank had previously forecast growth of 0.5 percent in 2023. The Bank of France also emphasized that it did not rule out the possibility of a recession next year depending on gas supplies, and that growth could occur somewhere between minus 0.3 and plus 0.8 percent. The Bank of France, which predicts that growth will recover when the energy crisis eases, also said that growth is expected to be 1.2 percent in 2024 and 1.8 percent in 2025. Estimating that EU-compatible inflation in France will be 6.0 percent in 2023, the French Central Bank predicted that inflation would decline to 2.5 percent in 2024 and 2.2 percent in 2025.