IEOM Highlights Decelerating Trend in Business Failures
The Institut d'Émission d'Outre-mer (IEOM), the central bank for French Pacific collectivities, released a report on December 1, 2025, indicating a slight slowdown in the growth rate of business failures across French overseas territories. This trend encompasses regions such as Wallis and Futuna, offering a nuanced perspective on the economic health of these distant French administrative divisions.
Analysis of Business Failure Statistics
According to the IEOM's findings, the total number of business failures in French overseas territories reached 2,309 between June 2023 and June 2024. While this figure represents a continued increase, the rate of growth has decelerated. The year-on-year increase stood at 19.1%, which is a significant reduction compared to the 29.6% growth recorded in the preceding quarter. This suggests a moderation in the pace at which businesses are facing insolvency across these territories.
In comparison, the report also noted that business failures in mainland France continued their upward trajectory, with a 25.5% increase, surpassing their average level from 2010-2019. Despite the slowdown in the growth rate for overseas territories, the overall growth rate of failures in these regions remains higher than that observed in mainland France.
Economic Context of Overseas Territories
French overseas territories, including Wallis and Futuna, often present unique economic characteristics. The economy of Wallis and Futuna, for instance, is heavily reliant on the administrative sector, which contributes to over half of its wealth creation. The trade sector also plays a crucial role, supported by household consumption. These territories are largely dependent on imports and receive substantial aid from the French government.
The IEOM serves as a vital economic and financial observatory, providing essential data and analyses to stakeholders involved in the economic development of these territories. Its reports aim to offer a clear understanding of the socio-economic challenges and opportunities.
Outlook for French Overseas Territories
The reported slowdown in the growth rate of business failures, while not a reversal of the trend, indicates a potential easing of economic pressures in French overseas territories. The IEOM's continuous monitoring provides critical insights into the evolving economic landscape, helping to inform policy and support initiatives aimed at fostering stability and growth in regions like Wallis and Futuna. The detailed analysis of these trends is crucial for understanding the broader economic resilience of these geographically distinct areas.
5 Comments
Donatello
Overseas territories still lagging mainland France. This report sugarcoats the reality.
Leonardo
It's good to see the IEOM providing these detailed insights, and a slowing growth rate is a minor relief. However, the heavy dependence on administrative sectors and imports suggests that long-term stability is far from guaranteed without structural changes.
Michelangelo
Finally, some good economic trends emerging. This report is encouraging!
Kyle Broflovski
This report offers a nuanced perspective, highlighting both a positive trend in deceleration and the ongoing reality of rising failures. It underscores the need for continued monitoring and targeted policies to support these distinct economies beyond just observing trends.
Eric Cartman
Any easing of economic pressure is welcome news for these distant regions. But we must not overlook the fact that 2,309 failures in a year is a substantial number, and the journey towards true economic resilience is still long and arduous.