The French central bank forecasts modest economic expansion in the final quarter of the year, although rising political uncertainty is expected to dampen momentum in November, according to its monthly report released on Tuesday. While no specific growth figure was provided, the assessment points to fragile conditions across key sectors.
In its regular business survey, the Banque de France highlighted that caution surrounding a high-stakes budget vote and a challenging global environment are likely to delay major investment projects in the eurozone’s second-largest economy this month.
“Industrial orders remain generally low, and uncertainty levels stay elevated, fueled by the current political climate,” the central bank stated.
Based on a monthly survey conducted between October 29 and November 6 involving around 8,500 companies, the institution anticipates that manufacturing, services, and energy sectors will maintain positive growth trends through the fourth quarter. Meanwhile, construction activity is projected to decline slightly, continuing its recent downward trajectory.
The outlook reflects a fragile balance between resilience in some industries and persistent headwinds from geopolitical tensions and domestic fiscal debates. Although core sectors show signs of holding ground, investor hesitation could limit broader recovery prospects in the near term.
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The French Central Bank expects slight economic growth in the last quarter
Sky News Arabia – Abu Dhabi
The French central bank said the economy “will grow slightly in the fourth quarter,” as rising political uncertainty contributes to a slowdown in the pace of expansion in November, although it did not mention a number in its monthly expectations issued on Tuesday.
The bank added in its periodic survey that caution regarding the high-risk budget vote and the difficult international context is expected to slow down major investment projects in the eurozone’s second-largest economy in November.
The French central bank said, “industrial orders are still generally low and uncertainty remains high, fueled by the political situation.”
Based on the results of the monthly survey it conducted on about 8,500 companies between October 29 and November 6, the bank said it expects manufacturing, services, and energy to maintain growth in the fourth quarter, while construction activity will continue to decline slightly.