France could see a modest rebound in economic growth in 2026, the National Institute of Statistics and Economic Studies (INSEE) said on Wednesday, while warning that the improvement is unlikely to translate into stronger employment gains.

According to INSEE's latest economic outlook, the French economy is expected to expand by 0.9 percent in 2025, slightly below the 1.1 percent growth recorded in 2024.

By mid-2026, France's cumulative GDP growth is projected to reach 1.0 percent, marking an acceleration compared with the full-year growth rate forecast for 2025.

Despite the expected pickup in economic activity, INSEE cautioned that labor market conditions would remain under pressure, with the unemployment rate potentially edging up to 7.8 percent by mid-2026.

Inflation, which has hovered around 1 percent since February this year, is forecast to rise moderately to 1.5 percent year-on-year by June 2026, the institute added.