Eurozone & France

Eurozone: The eurozone's GDP grew 0.4% in Q2, beating expectations and showing resilience despite the Iran war.

France: France's GDP grew 0.2% in Q2, rebounding from contraction, but faces headwinds from wildfires.

Eurozone: The eurozone's business activity returned to growth in July, ending a four-month stagnation, with the Composite PMI rising to 51.9. This suggests a potential recovery after a 0.2% contraction in Q1 2026, though risks from inflation and Middle East conflict persist.

France: France's output continued to fall in July, though the decline was marginal and softer than in June, indicating a slower contraction.

Eurozone: The Eurozone is experiencing inflation above the European Union — European Central Bank's target, driven by increased energy costs due to the Iran war, and is facing mediocre economic growth.

France: France's factories experienced a contraction in activity, and its finance minister has urged international financial institutions to assist countries vulnerable to the Iran war's fallout.

Eurozone: Eurozone growth forecast cut to 0.9% for 2026, reflecting war impact.

France: France's growth forecast lowered to 0.6% for 2026.

Eurozone: The Eurozone economy experienced a sharp weakening in its private sector expansion in March, with overall demand falling for the first time in eight months, largely due to the Middle East war.

France: France, through its Navy, has intercepted a Russia-linked oil tanker, demonstrating its commitment to enforcing sanctions against Russia and preventing the financing of the war in Ukraine.