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IMF Warns France Growth to Slow as Middle East Shock Adds Pressure on Public Finances

Paris, 22 May 2026 – The International Monetary Fund expects France’s economic growth to slow in 2026 as spillovers from the Middle East conflict raise inflation, dampen domestic demand and add pressure to an already challenging fiscal outlook.

In its 2026 Article IV mission concluding statement, the IMF projected France’s real gross domestic product growth to ease to 0.7% in 2026, from 0.9% in 2025, as higher uncertainty weighs on household consumption and business investment. The fund said growth is expected to recover gradually from late 2026 and strengthen in the second half of 2027 as external conditions stabilise and domestic uncertainty recedes after the elections.

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Author

  • Chee Liang CFA specializes in financial advice and global economic trends, delivering clear insights to help readers navigate markets, investments, and the shifting dynamics of the world economy.

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