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 11% 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 11 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||0.74||0.46 %||Sep 20|
|Exchange Rate||1.18||0.65 %||Sep 20|
|Stock Market||5,452||-0.29 %||Sep 20|
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September 13, 2018
On 13 September, the Statistical Institute (INSEE) confirmed earlier estimates that consumer prices rose 0.5% from a month earlier, contrasting the 0.1% month-on-month contraction observed in July.
September 7, 2018
In seasonally-adjusted terms, industrial output rose 0.7% month-on-month in July, in line with June’s reading.
September 5, 2018
In August, the seasonally-adjusted IHS Markit Composite Purchasing Managers’ Index (PMI) rose to 54.9 from 54.4 a month earlier, signaling another solid expansion of business activity across the private sector.
August 31, 2018
According to preliminary data published by the Statistical Institute (INSEE) on 31 August, consumer prices rose 0.5% from the previous month, contrasting the 0.1% contraction observed in July.
August 28, 2018
The consumer confidence indicator produced by the National Institute of Statistics and Economic Studies (INSEE) remained unchanged for the third consecutive month at an almost two-year low of 97 points in August.