French economy forecast to grow 0.9% in 2024, 1.3% 2025

France's economy is expected to expand 0.9% this year and 1.3% next year, according to the International Monetary Fund (IMF) on Friday.

"Despite a recovery slowdown in 2023, the French economy has remained relatively resilient in the face of financial tightening and weaker euro area external demand," the IMF said in its Staff Concluding Statement of the 2024 Article IV Mission.

It said the French economic growth is projected to converge towards its potential rate of 1.3% over the medium-term.

The financial institution noted that real GDP grew 1.1% in 2023, which was supported by net exports, while consumption remained weak.

"Inflation continued to decline since its peak in early 2023, despite some volatility from the unwinding of the energy support measures and delayed wage adjustments," it said.

"The disinflationary process is on track, with headline inflation expected to reach 2.3 percent in 2024 and return to target in the first half of 2025," it added.

The IMF noted that political fragmentation and policy uncertainty could delay fiscal consolidation and reform efforts, which weigh on confidence and public finances.