The government is revising its 2026 growth forecast downwards to 0,7%.

The government lowered its 2026 growth forecast to 0,7% on Tuesday, a significantly lower level than previous expectations. This downward revision reflects the persistent difficulties facing the French economy, which has been severely impacted by inflation that continues to weigh on activity. The government thus acknowledges that the economic recovery will be slower than anticipated, despite the measures already announced to support household purchasing power and business investment.

Inflation continues to weigh heavily.

While the rise in prices has slowed, it continues to erode corporate profit margins and dampen French consumer spending. The industrial and construction sectors remain particularly vulnerable, while pressures on energy and raw material costs maintain significant strain on the entire production system. This deteriorating economic situation complicates the government's task, as it must contend with already strained public finances and a budget deficit under European scrutiny.

This revised forecast also raises questions about the trajectory of the public finances recovery. With such weak growth, tax revenues are likely to be lower than anticipated, further complicating deficit reduction efforts. Social partners and economic observers are now waiting to see what concrete measures will be implemented to sustainably revive economic activity without increasing public debt.