France: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

Volume/Issue: Volume 2022 Issue 018

Publication date: January 2022

ISBN: 9798400201172

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Topics covered in this book

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Inflation , Labor , Money and Monetary Policy , Public Finance , Business and Economics - Statistics , International - Economics , IMF staff calculation , government shares staff view , des coûts , day infection rate , debt ratio , headline inflation , Labor markets , Inflation , Global , Europe

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Summary

A strong economic recovery is underway in France, bolstered by progress on vaccination, strong fiscal support and solid private sector led investment. Employment has recovered to above pre-crisis levels and unemployment is virtually stable. Inflation is increasing, mainly driven by a rise in energy prices but also due to supply-chain disruptions. The public deficit and debt ratio surged in 2020, reflecting the large amount of emergency support deployed and the drop in activity.