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26 Apr, 2024 10:36

France to fall out of top ten global economies – IMF

The country’s share of global GDP will drop below 2%, the fund has projected
France to fall out of top ten global economies – IMF

Slow economic growth will push France out of the list of the world’s ten largest economies within five years, according to an updated global outlook from the International Monetary Fund.

The Washington-based institution expects France’s share of global GDP in purchasing power parity (PPP) terms to drop to 1.98% in 2029, compared to 2.2% recorded by IMF analysts last year.

The fund’s latest projections indicate that France’s budget deficit will remain above 4% until 2029, with public debt expected to exceed 115% of gross domestic product (GDP). The European Commission previously signaled potential conflicts with EU fiscal rules in its response to France’s 2024 budget plan, stressing that the current outlook poses the risk of a negative adjustment by global rating agencies.

According to the database, which was updated by the organization earlier this month, Britain – whose share of global GDP in 2029 is expected to represent 2.2% on a PPP basis – will be ranked the world’s tenth largest economy. Meanwhile, Türkiye is projected to take ninth place, as its share over the next five years will reach 2.09%.

The top five contributors to the global economy will be China, projected to account for 19.48% of the world’s GDP through 2029, the US (14.72%), India (9.23%), Japan (3.21%) and Indonesia (2.79%). The top ten is also expected to include Germany (2.77%), Russia (2.71%) and Brazil (2.19%).

Earlier this month, the IMF raised its global growth forecast for the current year, concluding that the world economy had proved “surprisingly resilient.” The economists expect global GDP growth to amount to 3.2% in 2024, up by a modest 0.1 percentage point from its earlier January forecast. Next year, growth is expected to expand at the same pace of 3.2%.

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