France Cuts Growth Forecast And Misses Deficit Target
France lowered its 2026 growth forecast to 0.5 percent and announced it will miss its budget deficit target. Finance Minister Roland Lescure cited political uncertainty and surging borrowing costs.
France lowered its economic growth forecast for the year to 0.5% and admitted it will miss its 5.0% deficit target. The downgrade complicates the approval of the 2027 budget in a divided parliament ahead of the presidential election. Rising borrowing costs and widening yield spreads threaten further fiscal strain.
