IMF Executive Board Concludes 2026 Article IV Consultation with France, Citing Middle East War Risks

The IMF Executive Board concluded its 2026 Article IV Consultation with France, noting that real GDP growth is projected to remain modest in 2026, slowing from 0.9% to 0.6%. This slowdown is attributed to spillovers from the Middle East war, which are raising inflation and dampening domestic demand. The report also highlights rising geoeconomic tensions, potential for a disorderly AI correction, and heightened political uncertainty as significant downside risks.