Overview
- Banque de France governor François Villeroy de Galhau warned the president in a letter about a possible economic “décrochage,” or breakaway from peers.
- Output was essentially flat in the first quarter of 2026, with GDP down by about 0.001%, so a second‑quarter drop would meet the standard two‑quarter recession rule.
- Unemployment rose to 8.1% in the first quarter on the International Labour Organization definition, with youth joblessness at 21.1%.
- Inflation accelerated in April, with the EU‑harmonized index up 1.2% month over month and running near 2.5% year over year, which is eroding household purchasing power.
- Corporate insolvencies reached 69,938 over the 12 months to March, a record that signals mounting stress for firms beyond micro‑businesses.