France Finance Minister Lescure said the government has cut its 2026 GDP growth
forecast to 0.7% as output is being dragged down by budget approval delays and
the Middle East conflict, including the Iran war. He said the revision reflects
a weaker-than-expected start to the year, while inflation and consumption data
are more encouraging. The budget had been based on a 0.9% growth assumption for
2026; the new forecast aligns with Insee, whereas the Bank of France expects
weaker growth of 0.5%. Lescure blamed a deeply split parliament for postponing
budget passage, forcing the government to temporarily extend key spending and
tax measures via special legislation.
