world-economy

France Cuts 2026 Growth Outlook as Budget Delays, Middle East Tensions Weigh

France's government is reducing its economic growth forecast for 2026 to 0.7%, citing prolonged budget negotiations and Middle East conflict as key headwinds, Finance Minister Roland Lescure said. Port operations face continued disruptions, with Jeddah experiencing delays of 4-6 hours. Some relief may emerge as major carriers restore service through the Suez Canal, signaling potential normalization of critical trade routes. Companies are absorbing higher supply chain costs tied to the conflict. McCormick, the spice and ingredients maker, plans to use a $28 million tariff refund to help offset increased logistics and material expenses. Airlines are restructuring cargo operations, with carriers shifting away from passenger-freighter models to focus on dedicated freight capacity on key tradelanes.