PARIS, July 7 (Xinhua) -- France has cut its 2026 economic growth forecast to 0.7 percent from 0.9 percent, the country's Economy and Finance Minister Roland Lescure said on Tuesday at a meeting of the Public Finance Alert Committee, according to local media.
It was the government's second downward revision to the outlook this year. In mid-April, the government lowered the forecast to 0.9 percent from 1.0 percent, citing the impact of tensions in the Middle East.
The new forecast is in line with the estimates of France's national statistics agency Insee, the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD). The Bank of France cut its own 2026 growth forecast to 0.5 percent in June.
The economy ministry said the revision reflected weaker-than-expected first-quarter performance, the expected impact of the Middle East conflict on second-quarter activity, and a cautious view about the second half of the year.
While lower inflation and a recovery in household consumption in June were encouraging, they were not enough to keep the previous 0.9 percent full-year growth forecast within reach, the ministry said.
Lescure said the government would continue to support economic activity and growth.
Official data showed French GDP contracted 0.1 percent quarter-on-quarter in the first quarter, while annual inflation eased to 1.8 percent in June from 2.4 percent in May. ■