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%. Le

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.