France: 2026 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

The French economy continued to grow at a moderate pace in 2025 despite domestic and external shocks, while inflation remained contained. However, headwinds from the Middle East war and the energy shock have started to weigh on activity, complicating the authorities’ ongoing fiscal consolidation efforts. High deficit and debt levels, modest growth dynamics, and rising spending pressures—notably from defense, population aging, and the digital and green transitions—underscore the urgency of a credible and well-defined multi‑year strategy to unlock France’s growth potential and support fiscal consolidation. Presidential elections are planned for early 2027.