- Confirms France GDP growth forecast of 0.7% for 2025
- French sentiment is not very good because of political situation, economic wise remains fine
- Political uncertainty could affect up to 0.5% GDP growth
- France must keep 2029 deficit goal of 3% of GDP
- For next year, deficit should be within 4.8% of GDP
The fiscal situation in France is rather dire at the moment with estimates indicating that the deficit to GDP is about 5.5% in 2025. Amid continued political uncertainty and struggles to find a way to reduce that, we're starting to see France fall off the map and in turn becoming the next Italy. As for debt levels, it is roughly estimated at 116% of GDP. For some context, EU rules require that member states do not exceed 60% on that front as well as 3% on deficit to GDP. So, we're almost double that on both fronts in France.
