Lescure Maintains French Growth Outlook Amid Eurozone Stability Signals

France’s Finance Minister Roland Lescure reiterated that the government is not adjusting its medium-term economic growth projections, despite ongoing global macroeconomic volatility. The statement, delivered during a parliamentary briefing on March 11, 2026, emphasized confidence in domestic demand and industrial recovery as key drivers. Lescure noted that recent indicators, including Q4 2025 GDP growth of 0.4% quarter-on-quarter and a 1.9% year-on-year advance, justify maintaining the 2026 forecast of 1.6% real GDP expansion. The government's cautious approach reflects broader stability in the French economy, with unemployment holding steady at 7.8% and business investment rising 3.2% in the last fiscal quarter. These metrics suggest resilience against external headwinds, such as persistent inflation pressures and uncertain energy prices. The European Central Bank’s recent decision to hold interest rates steady at 3.5% further underpins confidence in the region’s economic fundamentals. Market reactions were muted, with the CAC 40 index (FCHI) rising 0.3% and EURUSD holding near 1.0845. Crude oil futures (CL=F) remained stable around $81.20 per barrel, indicating limited concern over energy-related inflation in Europe. The lack of forecast revisions avoids triggering short-term volatility in euro-denominated assets. Investors are now focusing on upcoming fiscal data releases, including February inflation figures and industrial production statistics, to assess whether the current trajectory will support continued policy restraint. The stability in France’s outlook contributes to broader European confidence, particularly for markets in Germany and Italy, where similar growth narratives are unfolding.