French economy is on the brink of an IMF bailout: Lombard

Due to mounting debt, France is reportedly considering an IMF bailout, according to French Finance Minister Eric Lombard. Since 2011, France’s long-term borrowing costs have been rising, and on August 26, 2025, they reached their highest level at 5.4% of GDP, pushing total public debt to 116.3% of GDP. In 2024, the debt-to-GDP ratio was 113.11%, and it is projected to rise to 128.39% by 2030. This upward trend is driven by primary deficits, rising interest payments, and a slowdown in debt reduction from nominal growth.

Indicators 2024 2025 2026
GDP growth (%, year-over-year) 1.2 0.6 1.3
Inflation (%, year-over-year) 2.3 0.9 1.2
Unemployment (%) 7.4 7.9 7.8
General government balance (% of GDP) -5.8 -5.6 -5.7
Gross public debt (% of GDP) 113.0 116.0 118.4
Current account balance (% of GDP) -0.9 -0.6 -0.6

 

The above table presents forecasts by the European Commission. In this table, French inflation is projected at 1.2% in 2026, while unemployment is expected to reach 7.8%. The general government deficit is forecasted at -5.7% of GDP, and gross public debt is projected to rise to 118.4% of GDP. The current account balance is expected to remain negative at -0.6% of GDP. On a positive note, GDP growth is anticipated to recover to 1.3% in 2026.

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