France’s economy stalled in the first quarter, prompting Finance Minister Roland Lescure to defend the 2026 growth outlook. The pause stemmed from weak domestic demand and a dip in exports, worsened by the onset of the Iran war.

A brief slowdown left investors uneasy, yet the government cut the 2026 projection to 0.9% earlier this month to reflect Middle East tensions. Lescure argued that the remaining three quarters could revive growth if conditions improve.

The decision signals confidence that short‑term shocks will not derail long‑term policy. French firms relying on export markets may face continued pressure, while public investment slumps ahead of local elections could further dampen momentum.

Overall, Paris maintains its stance that the current forecast remains appropriate, pending clearer signals from the evolving geopolitical landscape. Investors will watch economic data closely to gauge whether the 0.9% target holds.