Marc Touati Warns 2026 Will Be a Pivotal Year for the French Economy Amid Rising Debt and Modest Growth

Economist Marc Touati highlights that 2026 is set to be a critical juncture for France's economic trajectory, impacted heavily by geopolitical and economic dynamics. Despite a global growth forecast of 3% in 2026, France's economy is expected to grow only by 1%, continuing a sluggish trend from 2025 when growth was 0.9%. This weak performance is largely driven by public spending, according to Touati.

A key concern is France's ballooning public debt, which has reached an alarming 3.5 trillion euros. Increasing interest rates are predicted to intensify financial pressures, with the cost of servicing this debt expected to hit 70 billion euros in 2026. The country's public deficit remains high at 5.4%, a level Touati views as unsustainable.

The tourism and business travel sectors, sensitive to international and political shifts, have experienced a slow start in bookings for the year, exacerbating economic challenges. Inflation continues to impact consumer prices significantly, particularly in food products, adding to the cost pressures faced by households.

Touati advocates for urgent reforms including reducing taxes and public spending to stimulate more robust economic growth. He stresses the need for easing bureaucratic burdens and increasing business freedom to unlock greater economic potential. He also criticizes the reliance on credit-driven growth and calls for a pragmatic approach to address structural weaknesses.

This outlook follows a challenging 2025 marked by political and budgetary constraints, with travel agencies and related sectors notably affected. Touati’s analysis encourages policymakers to prioritize fiscal responsibility and economic reforms to steer France towards sustainable growth in 2026 and beyond.