Finance
French Central Bank Sees First Quarter Growth of 0.3%
Published by Global Banking & Finance Review®
Posted on April 13, 2026
2 min readLast updated: April 14, 2026
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Published by Global Banking & Finance Review®
Posted on April 13, 2026
2 min readLast updated: April 14, 2026
Add as preferred source on GoogleFrance’s economy likely expanded 0.3% in Q1 2026, slightly above Q4’s 0.2%, as businesses front-loaded orders amid rising Middle East conflict risks—but sentiment is weakening and supply‑chain pressures are mounting.
PARIS, April 13 (Reuters) - France's economy grew marginally faster in the first quarter as some businesses rushed to place orders ahead of expected price rises following the outbreak of war in the Middle East, the central bank said in its monthly outlook.
The euro zone's second-biggest economy likely grew 0.3%, up from the final quarter of last year when it had expanded 0.2%, the Bank of France said, offering a forecast in line with previous estimates.
The outlook supports the central bank's view that the economy will grow 0.9% this year "despite all the uncertainties linked to the conflict in the Middle East," Governor Francois Villeroy de Galhau said.
Drawing on its monthly business climate survey of 8,500 firms, the central bank said activity held up in March across industry, services and construction with factory output outperforming business expectations from the previous month.
Manufacturing was bolstered by strong momentum in aeronautics, nuclear power and defence, while services and building activity also remained broadly supportive.
However, the central bank warned that the conflict in the Middle East was weighing on sentiment. Businesses were more cautious when assessing April, with uncertainty indicators rising sharply to levels last seen during the early months of Russia's invasion of Ukraine.
Villeroy also flagged renewed supply-chain strains, particularly for companies reliant on petroleum-based products such as plastics and solvents, as transport disruptions and higher energy costs rippled through parts of industry.
"More firms are signalling that they will increase prices in April," he said. While around 11% of industrial companies raised prices in March, in line with historical norms, that share was expected to rise to 23% this month, the survey found.
(Reporting by Leigh ThomasEditing by Peter Graff)
Businesses placed orders ahead of expected price increases due to the Middle East conflict, boosting economic growth.
The conflict has increased uncertainty and supply-chain strains, especially for industries relying on petroleum-based products.
Manufacturing, especially aeronautics, nuclear power, and defense, as well as services and construction, supported growth in March.
Yes, the survey found 23% of industrial companies plan to raise prices in April, up from 11% in March.
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