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France jolted analysts this morning announcing its economy contracted in Q4 – real GDP fell 0.1% when it was expected to grow +0.2%. %PDF-1.6 %���� 100 percent of GDP at end-2018. France needs to stay the course on reforms, deepening and monitoring and preparedness to make further use of macro and h�b```e``*g`a`��bb@ !f�(ǁ|@�F볌 `>�b�M@��1��� ���+&/F����lʇN�7�o�����������c�6�#��M�d`��"��` �T< The economy of France is highly developed and free- market-oriented. resilience, and support living standards. service, and pensions should help, but need to be complemented with After the French economy expanded by 2.3 percent in 2017, growth declined Growth slowed last year but remained relatively resilient (photo: ImageBROKER/Ralph Fisher/Newscom). France Economic forecast for France The Commission publishes a full set of macroeconomic forecasts for the EU and its Member States in spring (May) and autumn (November) and publishes interim forecasts updating GDP and inflation figures in winter (February) and summer (July). A reading for the euro area due later is expected to increase to 51.4 from 51.1, but the disappointing French number means that’s now in question. services; improving the allocation of resources in education; better targeting social to those most in need and streamlining ���`�C^���mP�/q)������ _�X?8�A��"�=�����v�������q7K-H|���@�����Gi4�,���B������H��v����9.`�X���W-]��m������m �p�Bh�e�H(���!؇1�Wͫ��΅�" ��/��R}��G��e�ПN���h�o�;j`l��R��\��1�p�o�l�৓f��k��|N�=�R��� 2l� and subsidies; rationalizing spending on medical products and hospital France needs to stay the course on reforms, deepening and complementing them with additional measures to bolster economic … and their deepending if outcomes fall short of expectations will be 63 0 obj <> endobj x�}TM��0��+|�V��+�"$ Xʡ��M{�z �H ���k�!� �)�ƞyo��g�ج7];2����V�l�v�ѧ�lj�v��v���i�qB�_���x{9�������Z1��.�FsaOY���7�5�6mw`O?�����0��Gݍ�{i�����W�Ku��'����xy��OƏˠ�$,`��}�Z��;ho�헲��_�鮙�K�v��Oe�X6璧�@i'��j>S�D�؋��� increases undertaken during downturns. ,�^Y��ϔT�����0�La!Z�� hz.�]�i�hb���V� Fiscal policy: "S^.GuӔ�}Nd�^@7��}=9\� j�g0�"�������s�oB�t��4 ;硧k�Tam�[Ute��] @�F�)��AX��Ghw� �v�����p? However, global uncertainties and the effects of social unrests weighed on activity in 2018. The paper shows that (i) even though a 10% increase in energy prices causes a decline in energy use by 6% at the firm level, this increment has no effect on net employment at the industry level, but it motivates a reallocation of production and workers from energy intensive to energy-efficient firms. endstream endobj startxref sluggish productivity. An expected rebound in French activity in January failed to materialize, which will increase worries about the euro area’s second biggest economy. However, risks have investment and purchasing power, the government must prioritize spending administrative burden on start-ups and foster competition in regulated Outlook: reforms to reduce its debt level and rebuild fiscal space to prepare for governments to take full advantage of good times to reverse the spending An expected rebound in French activity in January failed to materialize, which will increase worries about the euro area’s second biggest economy. ��RT>N!�K�4�.����4u4�T��e4���E��!Z�df��Xܥ���%�J�! Recent and upcoming Having legislated significant tax relief in the coming years to support On the other hand, employment gains, increasing real wages, lower taxes and oil prices will support household consumption. additional measures to reduce France’s spending ratio, which has increased skilled, and non-EU migrants, and productivity growth sluggish, structural

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