world-economy

IMF Slashes France Growth Forecast Amid Middle East Turmoil

The International Monetary Fund cut its economic growth projection for France, citing mounting headwinds from the Iran conflict and political uncertainty ahead of next year's presidential election. France's central bank survey of manufacturers corroborated the slowdown, showing companies facing simultaneous pressure from weakening demand and rising inflation. The Middle East supply shock has prompted major forecasters globally to reduce consumption expectations, marking the biggest hit to demand growth since the pandemic. The confluence of geopolitical tension, higher energy costs and electoral uncertainty has created a challenging environment for France's economy. Russia also trimmed its official growth forecasts despite government efforts to stabilize activity. Economic headwinds are rippling across major developed markets as energy volatility and political risk cloud the outlook.