France has lowered its economic growth forecast for 2026 to 0.7%, down from the previously projected 0.9%, according to a mid-year public finance update presented to lawmakers by the Finance Ministry. The revised outlook reflects weaker-than-expected economic performance during the first half of the year.

Finance Minister Roland Lescure said the downgrade was driven by a slower start to the year, partly due to the impact of special budget legislation. He also cited the challenging international environment, including ongoing instability caused by the conflict in the Middle East, as a factor weighing on France’s economic prospects.

The updated forecast highlights the pressures facing Europe’s second-largest economy as it navigates domestic fiscal challenges alongside global geopolitical uncertainty. The government is expected to continue monitoring economic conditions while adjusting its fiscal strategy to support growth and maintain financial stability.

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