Country snapshots 2017-18: France

Business investment to pick up

GDP growth is projected to edge up to 1.6% by 2018, as tax cuts and faster job growth support stronger private consumption. Business investment should also pick up owing to tax reductions and low interest rates. In turn, the unemployment rate should continue to gradually fall, thanks to lower social security contributions, hiring subsidies and significant upscaling of training available to jobseekers. Inflation will remain low, as slack persists.

A continued reduction in debt servicing costs and some spending restraint is projected to bring the fiscal deficit down to just below 3% of GDP in 2018. Tax and social security cuts have reduced labour costs and improved the investment climate. A recent labour law reform clarifies conditions for dismissals and gives more importance to firm-level agreements on working time.    

GDP growth

2015

Current prices EUR billion

2016

  

2017

% real change

2018

   
2 181.1 1.2 1.3 1.6

Visit www.oecd.org/eco/economicoutlook.htm      

©OECD Observer No 308 Q4 2016    




Economic data

GDP growth: +0.5% Q3 2018 year-on-year
Consumer price inflation: 2.4% Dec 2018 annual
Trade: +0.3% exp, +0.7% imp, Q2 2018
Unemployment: 5.2% Dec 2018
Last update: 13 Feb 2019

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