(MENAFN) In a revised global outlook, the International Monetary Fund (IMF) forecasts France's descent from the ranks of the world's ten largest economies within the next five years due to sluggish economic growth. According to the IMF's projections, France's share of global GDP in purchasing power parity (PPP) terms is anticipated to decline to 1.98 percent by 2029, down from 2.2 percent estimated in the previous year.
The IMF's latest assessments reveal persistent challenges for France's economy, with the budget deficit projected to hover above 4% until 2029 and public debt expected to exceed 115 percent of GDP. Concerns have been raised by the European Commission over France's fiscal trajectory, warning of potential conflicts with European Union fiscal rules and the risk of negative adjustments by global rating agencies.
As France faces economic headwinds, the IMF's updated database positions Britain as the world's tenth largest economy by 2029, with a projected share of global GDP at 2.2 percent on a PPP basis. Turkey is poised to claim ninth place, with its share forecasted to reach 2.09 percent over the next five years.
The global economic landscape is anticipated to be dominated by China, contributing 19.48 percent to global GDP by 2029, followed by the United States (14.72 percent), India (9.23 percent), Japan (3.21percent), and Indonesia (2.79 percent). The top ten is also expected to feature Germany (2.77 percent), Russia (2.71 percent), and Brazil (2.19 percent).
Despite France's economic challenges, the IMF noted a more optimistic outlook for the global economy, citing resilience in the face of uncertainties. Global GDP growth is forecasted to reach 3.2 percent in 2024, up slightly from earlier projections, with growth expected to continue at the same pace in the following year. As France grapples with economic pressures, the shifting global economic landscape underscores the need for strategic reforms and policy measures to address underlying vulnerabilities and sustain long-term growth.
MENAFN30042024000045015687ID1108155023
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.