16 Hrs
Source:
AL24 News
France's economy faces historic decline
France is facing an unprecedented structural economic crisis, characterized by the accumulation of debt and rising fiscal deficits. The deficit reached 5.1% of GDP in 2026, and public debt is expected to surpass 120% of GDP in 2027, the highest since 1995. The challenges are mainly centered around sluggish growth, estimated at only 0.8% in 2026, declining industrial competitiveness—particularly in the manufacturing sector, which accounts for less than 12% of added value—and deteriorating defensive performance due to worsened geopolitical relations. Expert Mohamed Ashir warned that if this situation persists, it could lead to severe social repercussions, including increased taxes, reductions in social transfers, and rising inflation—particularly given the surge in fuel prices. Meanwhile, government options remain limited, relying mainly on cutting public expenditures, which could further exacerbate social and economic tensions.
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