Fiscal Balance in France
France - Fiscal Balance
Government announces largest fiscal adjustment in 30 years
On 28 September, the government presented its budget for the year 2013, in which it aims at cutting the fiscal deficit to 3.0% of GDP in 2013 from the 4.5% of GDP shortfall expected for this year. The government plans to narrow the fiscal gap to 0.3% of GDP by 2017. According to the text, the government projects an optimistic 0.8% GDP expansion for next year (Consensus Forecast: +0.5%). The draft foresees an adjustment of over EUR 30 billion, the largest in three decades, based on tax hikes and spending cuts. Only a third of the adjustment will come from spending cuts, the remaining two thirds based on additional revenues through higher taxes. The President Hollande's Socialist government plans steep tax increases for the top 10% of earners, temporarily lifting the levy up to 75% on incomes above EUR 1 million. These measures come on top of the previous tax increases announced in July. Meanwhile, the other EUR 10 billion in spending cuts include a reduction in operating costs and slashing investment.
France - Fiscal Balance Data
|Fiscal Balance (% of GDP)||-4.1||-3.9||-3.6||-3.4||-2.6|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.63||0.46 %||Jan 16|
|Exchange Rate||1.14||0.65 %||Jan 16|
|Stock Market||4,811||-0.29 %||Jan 16|
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December 19, 2018
In mid-December, President Emmanuel Macron responded to the growing social unrest of the ‘yellow vest’ protests by promising a handful of fiscal measures intended to mollify the protestors.
December 14, 2018
In December, the seasonally-adjusted IHS Markit Flash Composite Purchasing Managers’ Index (PMI) plummeted to 49.3 from 54.2 a month earlier, landing below the 50.0-point threshold and pointing to a rare contraction in private-sector activity. The print reflected significant disruptions brought on by the ongoing ‘yellow vest’ protests.
December 7, 2018
In seasonally-adjusted terms, industrial output expanded 1.2% month-on-month in October, contrasting a 1.6% contraction in September (previously reported: -1.8% month-on-month s.a.).
November 29, 2018
France’s economy picked up steam in the third quarter, according to a comprehensive estimate released by the Statistical Institute (INSEE).
November 27, 2018
In November, the consumer-confidence indicator published by the National Institute of Statistics and Economic Studies (INSEE) fell to 92 points—a nearly three-year low—from 95 points a month earlier.