France's Economy Resilient Amid Political Challenges

The Bank of France is set to slightly amend its growth forecasts, indicating resilience in France's economy despite political uncertainties. Central bank governor Francois Villeroy de Galhau announced modest upward revisions for economic growth, reflecting the nation's steady economic activity despite challenges in securing the social security budget.

The Bank of France is poised to revise its economic growth forecasts upward, showcasing the resilience of the French economy amid ongoing political challenges. Central bank governor Francois Villeroy de Galhau highlighted that the economy is maintaining stability despite a climate of uncertainty.

The announcement follows a narrow approval of the 2026 social security budget by French lawmakers, a crucial victory for Prime Minister Sebastien Lecornu. However, the financial and political cost of this victory could pose challenges as Lecornu strives to pass a comprehensive budget by year-end.

Villeroy de Galhau, speaking on CNews TV and Europe 1 radio, noted the revised Bank of France growth forecasts would be released on December 19. The French economy, potentially achieving or surpassing a 0.8% annual growth target, demonstrates resilience in face of recurring political instability.

(With inputs from agencies.)