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France's growth projected to reach 1.3% by 2025 from 0.9% in 2024: IMF

16 Jul '24
2 min read
French growth projected to reach 1.3% by 2025 from 0.9% in 2024: IMF
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Insights

  • Growth in France is projected to reach 1.3 per cent by 2025 from 0.9 per cent in 2024, the IMF has said.
  • The disinflationary process is on track, with headline inflation expected to reach 2.3 per cent this year and return to target in H1 2025, it noted.
  • The outlook remains subject to high uncertainty arising out of domestic politics and geopolitical tensions
Growth in France is projected to gradually reach 1.3 per cent by next year from 0.9 per cent in 2024, according to the International Monetary Fund (IMF).

The disinflationary process is on track, with headline inflation expected to reach 2.3 per cent this year and return to target in the first half of 2025, IMF said after its executive board concluded the Article IV Consultation with the country recently.

Over the medium term, growth is projected to converge towards its potential rate of 1.3 per cent.

The outlook remains subject to high uncertainty. Political fragmentation and policy uncertainty domestically could delay fiscal consolidation and reform efforts, weighing on confidence and public finances, IMF noted.

External downside risks, including escalating geopolitical tensions and an abrupt global slowdown in key trading partners, could also significantly impact the outlook.

In contrast, faster reform momentum in France and at the European Union (EU) level could mitigate these risks, an IMF release said.

IMF executive directors noted that the French economy had remained resilient in the face of recent shocks and welcomed the gradual recovery and the crisis response and slower-than-expected growth had weighed on public finances, reducing fiscal space at a time of rising investment needs for the green and digital transitions.

Fibre2Fashion News Desk (DS)

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