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||-3.5||-2.8|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||0.03||0.46 %||Jul 11|
|Exchange Rate||1.13||0.65 %||Jul 11|
|Stock Market||5,552||-0.29 %||Jul 11|
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July 11, 2019
On 11 July, the Statistical Institute (INSEE) reported that consumer prices rose 0.2% month-on-month in June, inching up from May’s 0.1% increase, in large part due to a rebound in prices for services.
July 10, 2019
Seasonally-adjusted industrial output expanded 2.1% month-on-month in May, the highest reading in 30 months, on the heels of a revised 0.5% increase in April (previously reported: +0.4% month-on-month s.a.).
July 3, 2019
The seasonally-adjusted IHS Markit Flash Composite Purchasing Managers’ Index (PMI) rose to 52.7 points in June, up from 51.2 points in May and signaling the fastest private-sector activity growth in seven months. June’s uptick reflected the quickest expansion in services-sector activities since November 2018 and a modest recovery in manufacturing output.
June 28, 2019
Consumer prices rose 0.2% month-on-month in June, edging up from May’s 0.1% outturn.
June 26, 2019
Consumer confidence entered positive territory in June, after rising for a sixth consecutive month.