French Minister of Economy and Finance Roland Lescure said on the 11th that the French government lowered the 2026 economic growth forecast from 0.7% previously forecast to 0.5%. This is the third time this year that the French government has lowered its economic growth forecast. When introducing the French government's latest macroeconomic forecast to the media on the same day, Lescure said that France's inflation rate is expected to be 2.1% in 2026 and will fall back to 1.8% in 2027. Analysts believe that the uncertainty brought about by the ongoing conflict in the Middle East, as well as the obvious impact of this summer's heatwave and drought on agricultural production, have dragged down the French economy. In particular, the decline in agricultural output has affected France's economic performance in the first half of the year, prompting the government to once again lower its growth forecast for the whole year. The slowdown in economic growth has further made it more difficult to rectify France's finances. Lescure said that the French government's previous goal of controlling the fiscal deficit rate to 5% of GDP in 2026 can no longer be achieved, and the fiscal deficit rate will exceed 5% this year.

French Minister of Economy and Finance Roland Lescure said on the 11th that the French government lowered the 2026 economic growth forecast from 0.7% previously forecast to 0.5%. This is the third time this year that the French government has lowered its economic growth forecast. When introducing the French government's latest macroeconomic forecast to the media on the same day, Lescure said that France's inflation rate is expected to be 2.1% in 2026 and will fall back to 1.8% in 2027. Analysts believe that the uncertainty brought about by the ongoing conflict in the Middle East, as well as the obvious impact of this summer's heatwave and drought on agricultural production, have dragged down the French economy. In particular, the decline in agricultural output has affected France's economic performance in the first half of the year, prompting the government to once again lower its growth forecast for the whole year. The slowdown in economic growth has further made it more difficult to rectify France's finances. Lescure said that the French government's previous goal of controlling the fiscal deficit rate to 5% of GDP in 2026 can no longer be achieved, and the fiscal deficit rate will exceed 5% this year.