In its latest review of the French economy, the International Monetary Fund (IMF) said on Monday, they maintained their French Gross Domestic Product (GDP) for this year and the next.
Key takeaways
Staff recommends a modest fiscal tightening in France of 0.25 percentage points of GDP relative to 2022.
France should begin fiscal consolidation next year and put public debt on firmly declining path.
Better to focus energy support in france by accelerating phase-out of price controls and increasing aid to those most in need.
Projects french budget deficit to fall in the medium term but to remain above its debt-stabilizing level.
Sees 2022 French GDP growth at 2.5%, 2023 growth at 0.75%.
Market reaction
At the time of writing, EURUSD is licking its wounds at around 1.0235, down 0.85% on the day. China’s covid curbs-induced flight to safety is driving the US Dollar through the roof so far this Monday.
