French economy not in danger but deficit must be cut, central bank chief says

PARIS: French central bank chief Emmanuel Moulin said on Friday that France was not in catastrophic economic danger but the government must act to reduce the country’s public deficit.

Moulin was speaking after INSEE revised its economic forecast for the euro zone’s second-largest economy lower on Thursday, predicting growth of just 0.4percent this year. Moulin cited several factors such as a deadly heatwave and issues at Airbus.

France’s national statistics institute previously forecast growth of 0.7percent for 2026, short of last year’s 0.9percent expansion. “I wouldn’t say it (the economy) is in danger, but it is in a situation that’s worrisome and unsatisfactory,” Moulin told RTL radio.