Part 8/16:
Demographic Headwinds: An Unsustainable Outlook
Compounding fiscal challenges is a demographic decline. France’s fertility rate, once near replacement level, has plummeted to 1.62 children per woman—a historic low. Fewer births mean a shrinking base of contributors to the social security system, intensifying the pressures on an already overburdened welfare model.
Adding to the complexity, immigration in France accounts for about 13% of the population—one of Europe’s highest proportions. Yet, due to slow and uneven integration, immigrant contributions to the social system remain limited. Without rapid, large-scale integration, immigration cannot be relied upon as a solution to demographic decline.