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France: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

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  • International Monetary Fund

Abstract

This 2016 Article IV Consultation highlights that economic recovery in France is solidifying. The economy is projected to expand by 1.5 percent in 2016, primarily driven by strong consumer spending. There are also signs of a cyclical recovery in investment, and the slump in residential construction appears to be bottoming out. By contrast, net exports are declining as demand from trading partners has slowed. Private sector job creation has remained lackluster, and the unemployment rate has hovered at about 10 percent. The government has continued to advance important reforms to help create the conditions for improved economic performance. As for budget policies, there are ongoing efforts to contain spending growth at all levels of government while easing taxes.

Suggested Citation

  • International Monetary Fund, 2016. "France: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France," IMF Staff Country Reports 2016/227, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2016/227
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