OECD Economic Surveys: France 2017

GDP Outlook

GDP is set to grow fairly strongly in 2017-18, supported by private consumption and investment. The labour market has started to improve. However, productivity gains are too low to sustain social protection, high-quality public services and rising incomes in the long run.

Reforms and Challenges

Recent reforms have strengthened competition in some services sectors, but it remains weak in others. Along with high and complex taxes, this weighs on employment and productivity growth.

Labour Market and Social Inclusion

Poverty is low overall. Yet, many youngsters and low-skilled workers are excluded from the labour market, especially when they live in poor neighbourhoods.

Healthcare Quality and Spending

Health-care quality is high, but insufficient support for prevention, a lack of coordination among providers and generous coverage of expenditures for most households result in excessive use and spending.

Public Finances and Policy Recommendations

A long-term strategy is needed to reduce public expenditure without endangering social protection so as to allow lower taxes with sustainable public finances. Increasing the focus on infrastructure and education spending for the poor would improve equity. This Survey also makes recommendations to foster an inclusive development of skills and employment that will lead to stronger productivity growth and higher living standards.

Special Features

POOR NEIGHBOURHOODS; HEALTH CARE