France Trims 2026 Growth Forecast and Hikes Inflation Goal

The French Finance Ministry lowered its 2026 growth forecast to 0.9% on Tuesday. Officials also raised inflation estimates to 1.9% due to Middle East tensions.

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The Finance Ministry of France has revised its economic outlook for 2026, citing the ongoing conflict in the Middle East as a primary factor for the adjustment. The euro zone’s second-largest economy is now expected to grow by 0.9% this year, a slight decrease from the 1.0% previously anticipated.

The French National Assembly building illuminated in the national colors of blue, white, and red during a long exposure night shot in Paris. REUTERS/Abdul Saboor
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