News ID: 126650
Publish Date : 26 April 2024 - 22:09

IMF: France to Fall Out of World Economy Top Ten

WASHINGTON (Reuters) - The International Monetary Fund (IMF) in an updated global outlook has reported that slow economic growth will push France out of the list of the world’s ten largest economies within five years.
The Washington-based institution expects France’s contribution to global economic growth 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 signalled potential conflicts with EU fiscal rules in its response to France’s 2024 budget plan, stressing that the current outlook poses the risks of a negative adjustment by global rating agencies.
According to the database, updated by the organization earlier this month, Britain – whose share of global gross domestic product growth in 2029 is expected to represent 2.2% on a PPP basis – will be ranked the world’s tenth biggest economy. Meanwhile, Turkey is projected to take ninth place, as its share of global growth over the next five years will reach 2.09%.
The top five of contributors to the global economy will be China, projected to account for 19.48% of world GDP growth 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 the global GDP 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%.