The OECD reviewed its growth forecast for France in 2025, with 0.6%, highlighting “the increase in uncertainty and commercial tensions” and calling Paris to clean its public accounts.
“Economic growth should decrease significantly by 2025,” wrote the Organization for Economic Cooperation and Development in a chapter of its forecasts dedicated to France, where it reduces its estimate for the country’s economic growth compared to that published in March.
With this review, the Paris -based economic institution is aligned with the forecast published in April by the International Monetary Fund (IMF), while the French banks and the French government contain an increase of 0.7% in the Gross Domestic Product (GDP) this year.
The “greatest uncertainties” and “the increase in commercial tensions” are at the origin of this most pessimistic prognosis, explains the OECD. The Parisian institution refers to both the protectionist offensive initiated by Donald Trump and the unstable political and budgetary situation in France. Regarding the commercial war, “the increase in customs duties on France’s exports and those of its main partners could further weaken the growth” of the country, the international institution continued.
“Essential” that France “respects its budget sanitation plans”
The president of the United States, Donald Trump, still announced on Friday that the steel surcharge and aluminum would pass 50%on Wednesday, a new climbing in its customs customs surcharge that the European Union “lamented strongly” on Saturday. In the internal level, “the risk of political turbulence was renewed at the end of this year, due to the absence of a clear majority in the National Assembly, and the uncertainties that result from it about fiscal policy could further hinder the investment decisions of companies,” he warned of the OECD.
The institution also urged France to clean its finances, a few days after a call from the IMF to the consent of “difficult decisions” in budgetary matters.
“If efforts have been focused on tax increases, it will be necessary to achieve the medium -term budgetary objectives, implement a more global strategy,” he continued, evoking falls in spending.
By 2026, the OECD provides an increase in GDP of 0.9%, or 0.1 less points compared to its forecasts in March, where the government and banquera of France expect 1.2%, and the IMF, 1%.
Source: BFM TV
