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||0.57||0.46 %||Jul 17|
|Exchange Rate||1.17||0.65 %||Jul 17|
|Stock Market||5,423||-0.29 %||Jul 17|
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July 12, 2018
Revised data released by the National Statistical Institute (INSEE) on 12 July matched preliminary figures and showed that consumer prices growth edged down from 0.4% month-on-month in May to a flat reading in June.
June 27, 2018
The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) decreased to 97 points in June, the lowest print in nearly two years (May: 99 points, previously reported: 100 points).
June 22, 2018
The IHS Markit flash composite Purchasing Managers’ Index (PMI) rose from 54.2 in May to 55.6 in June.
June 21, 2018
The National Institute of Statistics and Economic Studies’ (INSEE) business sentiment index for the manufacturing sector remained steady in June at May’s revised 110 points (previously reported: 109 points).
June 14, 2018
Revised data released by the National Statistical Institute (INSEE) on 14 June showed that consumer price growth picked up from the 0.2% month-on-month increase recorded in April to a 0.4% rise in May.