PARIS, May 21 (Xinhua) -- France's real gross domestic product (GDP) growth is projected to slow to 0.7 percent in 2026 from 0.9 percent in 2025, the International Monetary Fund (IMF) said on Thursday.
According to a statement released by the IMF, France's real GDP growth is expected to remain modest in 2026 as spillovers from the war in the Middle East raise inflation and weaken domestic demand.
Despite France's diversified economy and relatively low dependence on energy imports, rising geopolitical tensions, including a prolonged conflict in the Middle East, could disrupt trade, particularly energy supplies, further pushing up inflation and weighing on economic growth, the IMF said.
Domestically, heightened political uncertainty ahead of the 2027 presidential election could further delay planned fiscal consolidation and structural reforms, the IMF added.
While the French authorities remain committed to reducing the fiscal deficit below 3 percent of GDP by 2029, and the fiscal deficit fell to 5.1 percent of GDP in 2025 -- below the initial target -- fiscal consolidation remains slower than planned and still faces significant implementation risks, according to the statement.
France's GDP stagnated in the first quarter of 2026, recording zero growth from the previous quarter, according to preliminary data released on April 30 by the National Institute of Statistics and Economic Studies (INSEE).
