The Eurozone’s next economic underperformer
France’s economic outlook is concerning, with weak consumer confidence and a struggling labor market impacting growth. Discover more insights.
France is poised to become the Eurozone's next economic underperformer, with GDP growth projected at a mere 0.5% in 2026 and 0.7% in 2027. This decline is attributed to a precarious fiscal situation and persistent consumer weakness.
The country faces significant headwinds, including a fraught fiscal position and fractured politics, which could reduce GDP growth by approximately 0.3 percentage points annually from 2027 to 2030. Household consumption is under pressure due to a downturn in the labour market, exacerbated by political instability and external shocks, such as the recent Middle East conflict.
While export-oriented manufacturing, particularly in defence and aeronautics, offers some resilience, the overall outlook remains bleak. France's labour market is deteriorating, with rising unemployment and stagnant real wages contributing to weak consumer confidence and high household saving rates.
Download the report for more detailed insights.
You might also be interested in
This report was brought to you by the Macro team
Reliable and consistent economic forecasts, analysis, models and scenarios provide the insight necessary to make informed decisions in a fast-changing world.
