Reframing France must watch its budget, says the international institution in a report published Monday
The IMF asks France to make budgetary efforts. — Andrew CABALLERO-REYNOLDS/AFP
A reminder to budgetary order. France must begin next year to clean up its finances, recommends the International Monetary Fund (IMF) in a report published this Monday.
Through the freeze in electricity prices and gas, energy vouchers, discounts on fuel prices, business support… France has multiplied spending over the past year, assessed by the IMF at; more than 2% of its GDP.
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These weighed on public finances already very degraded by the Covid-19 pandemic during which the government notably financed short-time work and “whatever it costs” business closures. “It is justified; to begin fiscal consolidation in 2023”, writes the IMF in the conclusions of an economic assessment mission of France.
The IMF predicts growth of 0.7% in France next year
The government expects a public deficit of 5% next year after 4.9% this year, and plans to return to below 3% in 2027, severe; where its larger neighbors are betting on a faster return to This level.
The IMF, which still expects growth of 0.7% next year in France, fears “a slight widening of the deficit” in 2023, citing the extension of energy measures and the continuation of the elimination of production taxes for companies.
He calls for “a sustained fit” to reduce the deficit to 0.4% of GDP by 2030 based on the reduction in the growth of current expenditure, in particular those related to the pandemic and the energy crisis.