INSEE Trims French Growth Outlook Amid Iran Conflict

INSEE cut French growth forecasts to 0.2 percent for the first half of 2026. Inflation from the Iran war is expected to curb household spending and investment.

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The national statistics office INSEE has revised its economic growth forecasts for France downward for the first half of the year, pointing to the inflationary impact of the conflict in Iran. The agency now expects the euro zone’s second-largest economy to expand by 0.2% in both the first and second quarters, a reduction from the previously anticipated 0.3%.

A shopper examines prices at a market in Nice, France, on June 7, 2022. REUTERS/Eric Gaillard
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