Arab Today, arab today imf urges france to push forward reforms cuts forecasts
Last Updated : GMT 16:51:54
Arab Today, arab today
Arab Today, arab today

IMF urges France to push forward reforms, cuts forecasts

Arab Today, arab today

Arab Today, arab today IMF urges France to push forward reforms, cuts forecasts

Paris - AFP

The International Monetary Fund said Tuesday that France must keep up momentum on the reforms launched by the government a year ago to remove obstacles preventing the country to jumpstart growth and create badly-needed jobs. Once again, the Washington-based IMF downgraded its forecasts for the French economy, expecting gross domestic product (GDP) to contract by 0.2 percent this year and grow by 0.8 percent in 2014. In April it had predicted a 0.1 percent contraction in 2013 and 0.9 percent growth next year. The eurozone\'s second largest economy fell into recession in the first quarter and registered a record number of jobseekers in April -- the 24th consecutive month of rising unemployment. French President Francois Hollande has vowed to boost growth and curb the rising unemployment trend by the end of 2013, but as it published Tuesday its annual evaluation report on France, the IMF warned this would be hard. \"Following two quarters of negative growth (last quarter of 2012 and first quarter of 2013), economic activity should begin to recover in the second half of 2013, driven by a gradual improvement in the external environment,\" it said. But it warned there were still downside risks in the form of precarious growth prospects in Europe, and uncertainty in France on tax policy, \"which weighs on spending decisions of households and enterprises.\" It also said \"significant rigidities hinder the economy\'s capacity to grow and to create jobs.\" Edward Gardner, the IMF\'s mission chief for France, told reporters that \"macroeconomic variables lead us to think unemployment will continue to rise and that it will be hard to reverse this rise by the end of the year.\" \"It reflects in large part a general phenomenon in Europe that the recovery is slower in coming than we had expected,\" he added. Faced with a decline in productivity, companies have maintained real wage growth at the expense of profit margins, according to the IMF, \"which in turn has undermined the capacity of enterprises to innovate and remain competitive in international markets.\" It said restoring external competitiveness remained a \"critical priority.\" Striking a positive note, however, the IMF said Hollande\'s government \"has made meaningful progress on the structural reform front\", but that it now needs to build on that. \"This forward momentum should be sustained and broadened to address the multiple and deep challenges faced by France,\" it said, calling for more competitiveness in the services sector, pointing especially to regulated professions, transportation and distribution. Gardner said the fund is firm in its belief that \"competition should be seen as an instrument to create jobs (...) rather than an instrument that would destroy jobs\". He added there is \"no more scope for increasing the tax burden\", saying it has already reached a critical level. France\'s Industrial Renewal Minister Arnaud Montebourg responded by saying the risks linked to hiked competition \"are sometimes destructive and can prevent companies from investing\". The IMF pointed out that the financial situation of households and firms remained relatively sound, however, and could \"more easily translate into an increase in demand.\" \"The French economy can also rely on a high household saving rate, first rate global enterprises, positive demographics, a strong scientific research capacity, and high quality public infrastructure,\" the report added.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf urges france to push forward reforms cuts forecasts Arab Today, arab today imf urges france to push forward reforms cuts forecasts

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high

GMT 05:17 2017 Saturday ,25 February

Oil world cautious on Trump’s next move

GMT 09:59 2017 Friday ,24 February

Baidu revenue slips anew amid ad clampdown
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday