France's economy worrisome but not in danger, central bank chief says

France's central bank chief, Emmanuel Moulin, said on Friday that the country's economy was not in catastrophic danger, while stressing that the government must act to bring down the public deficit.

His remarks followed a downward revision of the growth outlook by INSEE, the national statistics institute, which on Thursday projected expansion of just 0.4% for the euro zone's second-largest economy this year. The institute had previously forecast 0.7% growth for 2026, below last year's 0.9% expansion.

Moulin pointed to a deadly heatwave and problems at Airbus among the factors weighing on activity. Speaking to RTL radio, he described the situation as worrisome and unsatisfactory rather than dangerous.

"We need to reduce the budget deficit," he said, adding that the economy nonetheless retains strengths, including inexpensive energy and a diversified industrial base. He cited an upturn across promising sectors such as data centres, defence and aerospace.

The government is expected to lower its own growth forecast, currently 0.7%, on Friday as it prepares to send its 2027 budget bill to parliament at the end of the month.