Latest News

French central bank sees slowdown next year, risk of recession


French central bank sees slowdown next year, risk of recession By Reuters

Breaking News


Economy 12 minutes ago (Sep 15, 2022 19:20)

© Reuters. Price tags are seen as a woman shops at a local market in Nice, France, June 7, 2022. REUTERS/Eric Gaillard

PARIS (Reuters) – The French economy will slow sharply next year in the face of Europe’s energy crisis, with a risk of a “limited and temporary” recession in the worst-case scenario, the central bank said on Thursday.

The euro zone’s second-biggest economy is on course for an expansion this year of 2.6% but growth will slow to 0.5% in 2023, the Bank of France said, under its reference scenario based on recent oil and gas futures prices.

But the high uncertainty around energy supplies and prices and an expected slowdown this winter meant the central bank preferred to flag a range for economic growth next year of between +0.8% and -0.5%, it said in its quarterly outlook.

“If a recession must happen, it will be limited and temporary with a sharp rebound in 2024,” central bank governor Francois Villeroy de Galhau said in an interview with La Croix newspaper.

In its last forecasts in June, the central bank had pencilled in growth of 2.3% this year and 1.2% next year. The finance ministry meanwhile forecast 2022 growth this week of 2.7%, and of 1% in 2023.

Looking further out, the central bank forecast on Thursday that growth would recover as energy market tensions subside, to reach 1.8% in 2024.

The central bank saw inflation reaching 5.8% on average this year and in a range between 4.2% and 6.9% in 2023 depending on energy markets, before easing back to 2.7% in 2024. The European Central bank targets medium-term inflation of 2%.

“We are firmly committed to bringing inflation back down towards 2% in the next two-to-three years,” Villeroy said.

French central bank sees slowdown next year, risk of recession

World Bank’s Gill worried about ‘generalized stagflation’ in global economyBy Reuters – Sep 15, 2022

WASHINGTON (Reuters) -World Bank Chief Economist Indermit Gill on Thursday said he was concerned about “generalized stagflation,” a period of low growth and high inflation, in the…

Monte dei Paschi shareholders approve seventh cash call in 14 yearsBy Reuters – Sep 15, 2022

MILAN (Reuters) – Shareholders in state-owned Monte dei Paschi di Siena (MPS) on Thursday approved a 2.5 billion euro ($2.5 billion) cash call. Here is a timeline of key events in…

Monte dei Paschi investors back latest cash call in stormy marketsBy Reuters – Sep 15, 2022

By Silvia Ognibene and Valentina Za SIENA, Italy (Reuters) -Shareholders in Monte dei Paschi di Siena (MPS) on Thursday approved a new share sale for up to 2.5 billion euros ($2.5…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

World Bank’s Gill worried about ‘generalized stagflation’ in global economy

Previous article

U.S. stocks slip while yields rise, Fed in focus

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News