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IMF Cuts France Growth Forecast as Fiscal Risks and Political Uncertainty Deepen

PARIS, 21 May 2026 – The International Monetary Fund has cut its growth outlook for France and warned that the country faces rising fiscal risks, as high public debt, slow deficit reduction and political uncertainty weigh on confidence in one of Europe’s largest economies.

The IMF now expects France’s economy to grow by only 0.7% in 2026, reflecting weaker momentum, tighter financial conditions and uncertainty surrounding fiscal policy. The downgrade comes as France continues to struggle with a large budget deficit and one of the highest public spending levels among advanced economies.

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  • Tim Clark is a Senior Geopolitical Analyst for The Ledger Asia, specializing in the intersection of international relations and market stability. With over a decade of experience, Tim provides deep-dive insights into Indo-Pacific security, global supply chain resilience, and the strategic competition between major powers.

    Previously a consultant for leading international think tanks, he focuses on how shifting diplomatic landscapes and maritime disputes impact corporate governance and trade policy. At The Ledger Asia, Tim’s analysis equips readers with the clarity needed to navigate the complex regulatory and economic environments of Southeast Asia and beyond.

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