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. 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.