France cuts 2026 GDP forecast to 0.9%, raises inflation forecast to 1.9%

France's downward revision of its 2026 GDP forecast to 0.9% coupled with an increase in the inflation outlook to 1.9% signals a slowdown in economic growth and suggests rising price pressures.

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This shift may influence market expectations surrounding fiscal policy and potential interest rate adjustments, impacting both the euro and broader European equities given the country's economic significance.

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