The International Monetary Fund (IMF) Executive Board has concluded its Article IV Consultation with France, as of July 11, 2025. The French authorities have agreed to publish the Staff Report prepared for this consultation.
In 2024, the French economy showed resilience despite uncertainties, with a real GDP growth of 1.1 percent. This growth was partly driven by the Paris Olympics, which boosted services and consumption. However, private investment faced challenges due to policy uncertainty and tight financial conditions. The labor market remained strong, and inflation continued to decline. Despite efforts to control spending, fiscal policies were expansionary in 2024 due to lower-than-expected revenues and increased debt service payments.
Looking ahead, real GDP growth is projected to slow to 0.6 percent in 2025 amid trade tensions and weak growth among trading partners. Growth is expected to reach 1 percent in 2026, though risks remain due to geoeconomic fragmentation and domestic policy uncertainty.
The IMF's Executive Directors commended France's economic resilience but emphasized the need for strengthening public finances and pursuing structural reforms for sustainable growth. They agreed that fiscal adjustment plans are necessary for reducing debt and called for additional measures to support these adjustments.
Directors praised France's financial oversight and macroprudential measures as assessed by the IMF’s Financial Sector Assessment Program (FSAP). They noted that financial stability risks are contained but stressed the importance of enhancing risk analysis and improving data quality.
The Directors also highlighted the importance of raising productivity growth while facilitating fiscal consolidation. They supported ongoing efforts in targeting state aid and R&D spending and reducing regulatory burdens.
France's role in digital and green transitions was acknowledged, with encouragement given towards promoting employment quality in these areas. Directors recommended further social benefit reforms to enhance work incentives and reduce career fragmentation.
The next Article IV consultation with France is expected on a standard annual cycle.