France Other


France: France introduces further austerity measures

November 23, 2011

On 7 November, the government unveiled a new plan to trim the budget deficit by EUR 7 billion in 2012 and EUR 11.6 billion in 2013, which comes on top of the August austerity package already included in the 2012 budget draft. The package aims at compensating the downward revision of economic growth assumptions for 2012 (from 1.75% to 1.0%) and to meet the deficit target of 4.5% of GDP in 2012 and 3.0% of GDP in 2013. The deficit-reduction plan entails, among other measures, a one-time 5% increase in corporate tax for large corporations through 2013, an increase of the reduced-VAT from the current 5.5% to 7.0% (except for some basic goods) and further reductions in health-care spending. The austerity plan is aimed at shielding the country against contagion from the European debt crisis. Fears of contagion have already prompted international rating agencies Moody's and Standard and Poor's to place France's current AAA rating under revision. French borrowing costs are increasing as contagion from the debt crisis spills over into the core economies of the euro area. The 10-year bond yield reached 3.12% on 3 November , which pushed the yield difference, or spread, with German securities to 133 basis points, the most since the euro was introduced in 1999.


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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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