France Lowers 2025 Growth Forecast to 0.7% as Trade Policy Uncertainty Persists

The revision follows US tariff adjustments and highlights the fragile economic outlook across Europe, with further changes tied to upcoming US trade negotiations.

• France has revised its 2025 economic growth forecast from 0.9% to 0.7%, citing global trade uncertainties and recent US tariff policy changes.
• US President Donald Trump announced a three-month suspension of tariffs on all countries except China, creating temporary relief but ongoing unpredictability for global markets.
• The Bank of France and the French Economic Observatory (OFCE) have also adjusted their 2025 growth forecasts to 0.7% and 0.5%, respectively, reflecting broader concerns.
• Economy Minister Eric Lombard stated that further revisions depend on the outcome of upcoming negotiations with the United States over customs duties.
• Italy has also reduced its 2025 growth forecast to 0.6%, signaling shared economic challenges across Europe linked to US trade policies.

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