“France: Political chaos will weigh on growth. The French economy is bracing for a turbulent 2025, with political instability casting a long shadow over its prospects. The constant threat of censure against any government put in place, the impossibility of passing a budget to put the public finances in order, and the prospect of yet more elections is simply fuelling uncertainty. And that’s damaging both consumer spending and business investment. The chaotic debate over the 2025 budget leaves the tax landscape murky, but one thing is clear: the ballooning budget deficit will force the government to tighten its fiscal belt, stifling economic growth. On the international front, looming tariffs and sluggish global economic activity are set to hamper French exports. As a result, GDP growth is projected to slow to 0.6% in 2025, down from 1.1% in 2024.”
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Morten W. Langer
