Good news is in order this fall of 2016 with a new revision of the French public deficit and growth by Insee. The Institute of Statistics has confirmed that the recovery is indeed underway. GDP also seems to be improving.
While Insee was expecting a 1% growth for 2015, it appears that household consumption and corporate investment have ultimately led GDP to reach a growth rate of 1.2%.
This should reassure the government in its 2016 forecasts: it is still aiming for a 1.5% growth, which would allow the public deficit to fall to 3.3%.
However, the government must continue its efforts: the European Union expects France’s deficit to drop below 3% in 2017.
After having obtained more than one extension for this obligation, the EU will not let anything slide, and no excuses will be acceptable. In such a case, France will have to pay a fine of 4 billion euros.
