France’s central bank is expected to revise its growth forecasts upward for this year and next, reflecting the economy’s resilience amid political turbulence, Governor François Villeroy de Galhau stated.

He told TF1 on Wednesday that the Bank of France’s current projections of 0.7% growth in 2025 and 0.9% in 2026 should be seen as minimum estimates, following an optimistic monthly activity report released the day before.

The survey suggested that the economy is performing strongly enough to potentially achieve slight growth in the final quarter of the year.

“It’s a confirmation of what we saw in the third quarter, which is to say the French economy is rather resilient,” Villeroy said on TF1.

The surveys and forecasts highlight a contrast between France’s economic performance and the ongoing political crisis, which has seen successive governments fall and left the country without a clear route to passing a budget.

Adding to potential challenges, lawmakers have approved amendments that could substantially raise taxes on the largest companies if the finance bill is ultimately enacted, Bloomberg reports.

So far, the uncertainty seems to be affecting households more than businesses. Savings rates remain elevated, and consumer spending has only seen modest growth in recent months.

The Bank of France’s uncertainty index, derived from text analysis of business leaders’ responses, showed a slight decline in the industrial and services sectors in October, although it still remains above typical levels.

Villeroy noted that the uncertain environment is shaving roughly 0.5 percentage points off France’s economic growth, with at least 0.2 points linked to domestic political and budgetary instability.

“If we can reduce this uncertainty by finding a reasonable trajectory to reduce the deficit, contrary to what is usually feared, we’d increase growth,” Villeroy stated.