Moody's new outlook is below the French government's target of 0.5% growth. (Reuters pic)PARIS: Credit rating agency Moody's has halved its full-year GDP growth forecast for France to 0.2%, two weeks after reiterating its negative outlook as the government struggles to cut its debt pile.
Even though it maintained its Aa3-Negative rating in late October, Moody's said in a report to clients Tuesday that "political uncertainty, higher bond yields and fiscal challenges have constrained growth in 2026".
The new outlook is below the government's own target of 0.5%, and comes as the Bank of France recently lowered its own forecast to 0.3%.
International investors are increasingly concerned about French public debt that stands at around 120% of GDP -- one of the highest levels in the eurozone and well above the EU limit of 60%.
