Key facts
- France's Finance Ministry lowered its 2026 economic growth forecast to 0.7%.
- The previous 2026 economic growth forecast was 0.9%.
- Factors cited for the forecast cut include a less favorable start to the year and the international situation.
- The international situation includes the conflict in the Middle East and an oil price spike.
- The French government survived a no-confidence vote in parliament.
- The Green party initiated the no-confidence vote.
- The vote was over the government's handling of a severe heatwave in late June.
- The heatwave resulted in over 2,000 excess deaths.
- The no-confidence motion failed to garner enough support to pass.
France's Finance Ministry has revised its economic growth forecast for 2026 downwards to 0.7%, a decrease from the previously projected 0.9%. The ministry cited a less favorable economic beginning to the year and the prevailing international circumstances as key reasons for this adjustment. Among the international factors influencing the forecast are the ongoing conflict in the Middle East and a significant spike in oil prices.