France and Morocco face economic shifts amid stagnation and manufacturing declines

France is experiencing economic stagnation, with GDP growth projected at only 0.4% for 2026. The economy is currently being sustained by public consumption and social benefits, which act as a buffer against recession. However, the national deficit, nearing 5% of GDP, is increasingly used to maintain current operations rather than driving future growth, as a growing portion of spending is directed toward debt interest. The national debt has reached 3,536 billion euros, or 117.5% of GDP.

In Morocco, the manufacturing sector has undergone a significant downturn. After a period of growth in 2025, the manufacturing production index fell by 4.5% in the second quarter of 2026 compared to the same period the previous year. This decline follows a volatile cycle of growth and rebounds. While the automotive and agri-food sectors show some resilience, other industries such as chemicals, clothing, and electronics have seen substantial decreases.