The French economy now seems to be in better shape than it was five years ago, but the improvement has been limited.
- Growth has picked up, but still lacks vigour. Although progress has been made to boost competitiveness, the country still has a long way to go. The fiscal deficit continues to be reduced, and the unemployment rate has finally begun to decline. Yet given the slow pace of adjustments, both indicators are still high.
- According to the European Commission, these imbalances are gradually being corrected, to the point that in 2018, France’s status could be revised from “excessive imbalances” to “imbalances”, and the country will probably exit the excessive deficit procedure.
Since early 2013, the French economy has been slowly recovering. This turnaround goes beyond a cyclical improvement and a simple return to growth, which is still not very high. Fundamental improvements are also taking place, in terms of competitiveness, public finances and the labour market, although these positive signs still need to be confirmed and accentuated. This article will present an overview of the current state of the French economy at the start of a new administration. We only intend to provide a broad outline of the situation, and will provide a more in-depth analysis in our next issue of Conjoncture.
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by Hélène BAUDCHON