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IMF urges Paris to save money from 2023

2021-11-09T19:38:31.380Z


Unsurprisingly, the institution is worried about the state of French public finances. It's a ritual. Year after year, returns in the autumn the report, always in a diplomatic style, of the International Monetary Fund (IMF) on the French economy, its assets, its challenges ... For this 2O21 edition, it was a question of observing in which France was emerging from the coronavirus pandemic. And the conclusions, published on Tuesday, give the government satisfaction. The Washington-ba


It's a ritual.

Year after year, returns in the autumn the report, always in a diplomatic style, of the International Monetary Fund (IMF) on the French economy, its assets, its challenges ... For this 2O21 edition, it was a question of observing in which France was emerging from the coronavirus pandemic.

And the conclusions, published on Tuesday, give the government satisfaction.

The Washington-based institution notes that France was one of the countries most affected by the pandemic and justifies its rapid economic rebound by the effectiveness of its vaccination and recovery policy.

"

The IMF welcomes the vigor and speed of the return to growth in France, one of the few European countries which has regained its pre-crisis level of activity and jobs

," Bruno Le Maire immediately welcomed.

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The IMF worries about the risks for the recovery

After the good results of the third quarter, the institution revises upwards the tricolor growth for 2021 to 6.75%, against an estimate of 6.25% for the government.

It then expects a rebound (more limited this time) in GDP of 3.7% in 2022.

With the recovery achieved, the IMF is looking to the longer term and the picture suddenly appears much less encouraging. Unsurprisingly, the institution is thus worried about French public finances. Without a change in economic policy, France's public deficit will remain above 3% within five years and the debt will continue to grow. "

The gap between the debt of France and that of its European peers, already very high, will widen further

", even judges the IMF.

To guard against such a risk, the institution recommends that Paris embark on the difficult path of savings from 2023. A cumulative effort, compared to the current trajectory, representing 4.75% of GDP over seven years, ie more than 100 billion euros approximately, is recommended to replace the country in the European framework.

Given the country's very high taxation, the IMF considers that this recovery in public accounts cannot be obtained by tax increases.

Source: lefigaro

All news articles on 2021-11-09

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