France: IMF expects 4.3% deficit by 2027

After growing 5.5% in 2023, France’s government deficit should slowly fall to 4.9% this year and next, before falling to 4.4% in 2026 and 4.3% in 2027, the IMF notes in his fiscal policy report unveiled on Wednesday.

The institution also does not expect this government deficit to fall below 3% in 2028, nor in 2029, where 4.1% and 3.9% are expected respectively.

The French Stability Program (PSTAB), presented on Wednesday in the Council of Ministers, includes the executive’s forecasts to reduce the deficit by 2027 and nevertheless foresees a return of less than 3% in 2027, to 2.9 %, to meet the requirements of Brussels.

In detail, France expects a recovery of the deficit to 5.1% in 2024, 4.1% in 2025, 3.6% in 2026 and finally 2.9% in 2027, and estimates that reducing the deficit by 2027 to below 3% a “realistic and ambitious target.