The International Monetary Fund warns that France's public debt could reach 122% of GDP without additional fiscal measures.

The International Monetary Fund (IMF) warned in its annual report that the high level of public debt and increasing pressures on budgetary spending raise the vulnerability of the French economy and require firm measures for fiscal consolidation.

Although the French economy has maintained stability in 2025, the IMF warns that high energy prices and the effects of the conflict in the Middle East continue to put pressure on the economy.

The institution believes that the current pace of budget deficit reduction is insufficient to achieve the Government's goal of below 3% of GDP by 2029 and estimates that public debt could reach 122% of GDP, with a deficit of 3.5% in 2031. The IMF recommends an annual fiscal consolidation effort of 0.8% of GDP, based on streamlining spending and structural reforms, without affecting investments in defense, health, and the energy transition.

At the same time, the institution forecasts an economic growth of only 0.6% in 2026, amid geopolitical tensions and political uncertainties.