France GDP


France: France introduces new austerity measures in the 2012 budget draft

September 1, 2011

On 24 August, French Prime Minister Francois Fillon announced a new set of austerity measures, included in the 2012 budget draft expected to be approved in late September. The deficit-reduction plan entails an additional freeze of government spending, a cap on tax breaks and an increase in income tax (including a one-off levy on incomes over EUR 500,000 per year), as well as higher levies on alcohol and tobacco. The estimated spending cuts amount to a total EUR 12 billion this year and next, which would bring this year's fiscal deficit to 5.7% of GDP and to 4.5% of GDP in 2012, before narrowing further to 3.0% in 2013. The move came amid lower growth prospects for this year, which could jeopardize the government's 2011 fiscal deficit target. Official forecasts now see economic growth at 1.75% this year and next, instead of the previous 2.0% and 2.25% respectively. The downward revision comes on the back of a poor Q2 GDP result and takes into account the developments in the U.S. economic situation and the impact of the European sovereign debt crisis.


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France Economic News

  • France: Business confidence reaches six-month high in May

    May 23, 2019

    In May, the National Institute of Statistics and Economic Studies’ (INSEE) business-climate indicator for the manufacturing sector climbed 4 points from a month earlier to land at 104 points—a six-month high.

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  • France: Private-sector activity growth hits six-month high in May

    May 23, 2019

    The seasonally-adjusted IHS Markit Flash Composite Purchasing Managers’ Index (PMI) jumped to 51.3 points in May, climbing from 50.1 points in April and signaling the fastest private-sector activity growth in six months. May’s upturn reflected stronger services-sector activity once again offset by a fall in manufacturing output—although the pace of losses slowed somewhat from April.

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  • France: Inflation edges up in April

    May 15, 2019

    On 15 May, the Statistical Institute (INSEE) reported that consumer prices rose 0.3% from a month earlier in April (March: +0.8% month-on-month).

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  • France: Industrial output falls in March

    May 10, 2019

    Industrial output contracted 0.9% month-on-month and in seasonally-adjusted terms in March, on the heels of a revised 0.1% month-on-month expansion in February (previously reported: +0.4% month-on-month s.a.).

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  • France: Growth steady through Q1

    April 30, 2019

    France’s economy grew 0.3% quarter-on-quarter and in seasonally-adjusted terms in the first quarter, according to a first estimate released by the Statistical Institute (INSEE).

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