Bank of France. Photo courtesy of Central Bank official website
Growth is expected to drop half a point to 1.1 percent, the Bank of France said.
France's gross domestic product (GDP) will grow by 3.4 percent this year if the price of oil averages $93 dollars per barrel, under one scenario; but by only 2.8 percent if it reaches $119, the central bank predicted.
Without the Ukraine war, and the effect on Russian oil supplies, that growth forecast would have been between 3.6 and 3.9 percent.
The bank expected inflation to reach 3.7 percent this year -- or 4.4 percent under the second scenario.
The negative impact of the Ukraine conflict on the French economy will have three main effects, the bank said: higher energy and raw materials prices; lower consumption and investment; and a hit on foreign trade.
Bank of France director-general Olivier Garnier said the central bank had not factored in a total halt in Russian oil and gas supplies.
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