France's central bank says Ukraine situation will lead to slower French growth, higher inflation

　　China News Agency, Paris, March 13 (Reporter Li Yang) The Bank of France announced the latest macroeconomic forecast for France on the 13th local time, pointing out that the situation in Ukraine will lead to a slowdown in French economic growth and an increase in inflation.

　　The Bank of France believes that due to the uncertainty of the situation in Ukraine, there may be two different economic growth prospects.

The first economic growth scenario assumes that the future average price of Brent crude oil can be maintained at 93 US dollars / barrel, the European natural gas price can be maintained at 102 euros / MWh, and the French GDP will increase by 3.4% in 2022.

　　The Bank of France's second economic growth outlook assumes a future average of Brent rising to $119/bbl, European gas prices rising to €181/MWh, and French GDP growth slowing to 2.8 in 2022 %.

The Bank of France is concerned that energy prices observed in recent weeks may favor a second economic growth outlook.

　　At the end of 2021, the Bank of France predicted that France's economic growth in 2022 could reach 3.6%. Without the impact of the situation in Ukraine, French economic growth may be stronger than this forecast.

Garnier, an economist at the Bank of France, pointed out that according to the French economic growth momentum at the end of 2021 and 2022, the French economy in 2022 would have had the opportunity to achieve growth close to 4% under normal circumstances.

　　The Bank of France confirmed that the situation in Ukraine, in addition to slowing economic growth in France, will also keep inflation “high throughout 2022.”

Rising energy and food prices are likely to "substantially boost" inflation in the coming months.

The Bank of France forecasts that inflation for all of 2022 should be between 3.7% and 4.4%.

　　The Bank of France is also not optimistic about the economic outlook beyond 2022.

The Bank of France forecasts that the French economy will grow by 1.3% to 2% in 2023, and inflation should be in the range of 2% to 3.3% for the whole of 2022.

　　French Prime Minister Castel announced this weekend that in response to rising oil prices, France will adopt a preferential policy of reducing the price of automobile fuel by 15 euro cents per liter. This policy will be implemented on April 1 for a period of four months. Businesses can enjoy the discount, and officials will spend 2 billion euros for this.

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