Corsica's Economic Stagnation Amid Geopolitical Uncertainties
Corsica confronts economic stagnation due to external tensions and demographic shifts.
Key Points
- • Corsican economy faces stagnation due to geopolitical uncertainties.
- • French growth forecast cut to 0.6% for 2025, affecting Corsica.
- • Paid work hours in Corsica decreased by 0.6% year-on-year in March 2025.
- • Health and social action sectors show employment growth amid broader economic challenges.
The Corsican economy is currently facing significant stagnation, largely influenced by external geopolitical tensions and uncertainties. Recent analyses reveal that these factors have resulted in a downward revision of France's growth forecast for 2025 to 0.6%, a stark decline from an earlier prediction of 1.2%. This economic cooling is particularly evident in Corsica, where paid work hours fell by 0.6% in March 2025 compared to the same month the previous year, reflecting an ongoing economic contraction since November 2024
This downturn coincides with rising concerns among local economic stakeholders about the impact of international events, including military strikes and trade conflicts, as the crucial tourist season looms. Despite the broader economic challenges, certain sectors, particularly health and social action, are experiencing growth in employment, partly driven by demographic shifts. Christophe Basso, the regional director of Insee Corsica, noted that the aging population is a significant factor; forecasts predict that by 2040, one-third of Corsicans will be over 65, a milestone not expected nationally until 2070. This demographic trend is contributing to the resilience of specific non-market service sectors in an otherwise struggling economy.