France's Economy Surprises with 11th Place Ranking Amid Industrial Decline

Despite facing political turmoil and budgetary challenges, France has secured the 11th position in The Economist’s "Economy of the Year" rankings for 2025, outperforming major economies such as the United States and Germany. The country’s modest GDP growth of 0.9% and low inflation rates contributed to this accomplishment, according to the French National Institute of Statistics and Economic Studies (Insee).

In contrast, Germany struggles with an industrial crisis and minimal GDP growth of 0.2% after consecutive years in recession, while the United States faces persistent inflation, high unemployment, and economic imbalances due to its dependence on technology sectors.

The aerospace industry, notably Airbus, has played a significant role in supporting France’s economic growth. However, concerns linger over the sustainability of this expansion, as France relies heavily on public spending, running a budget deficit exceeding 160 billion euros and carrying debt at 117% of its GDP. Economic expert Emmanuel Combe warns that without substantial structural reforms, investors' current tolerance may wane, potentially worsening the country’s economic outlook.

Simultaneously, France continues to grapple with a pronounced wave of deindustrialization. A recent judicial liquidation of Brandt, an appliance manufacturing giant, resulted in 750 job losses and is part of a broader trend of industrial decline marked by numerous company closures and workforce reductions. The CGT union has emphasized the magnitude of this industrial erosion, calling for urgent awareness and action.

Experts such as Vincent Charlet from La Fabrique de l'Industrie, Nicolas Dufourcq of Bpifrance, and geographer Anaïs Voy-Gillis highlight the need to confront France’s industrial challenges, referencing their extensive research documenting decades of deindustrialization and its socioeconomic impacts.

Although France’s economic ranking in OECD-only comparisons defies pessimistic forecasts, the industrial sector’s ongoing struggles and fiscal vulnerabilities paint a complex picture. The long-term health of France’s economy will depend on addressing these dual challenges—sustaining growth while revitalizing its industrial base.