Front Matter Page

©1997 International Monetary Fund

April 1997

IMF Staff Country Report No. 97/27

France—Recent Economic Developments

This report on recent economic developments in France was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of France or the Executive Board of the IMF.

International Monetary Fund

Washington, D.C.

Front Matter Page

INTERNATIONAL MONETARY FUND

FRANCE

Recent Economic Developments

Prepared by K. Habermeier, O. Doré, and J. Levy (all EUI), and Ms. Van Rijckeghem (RES)

Approved by the European I Department

October 1, 1996

Contents

• Basic Data

• I. Domestic Economy

  • A. Overview

  • B. Expenditure Developments

    • Exports

    • Private consumption

    • Gross fixed investment

    • Stockbuilding

    • Imports

    • Saving investment balance

  • C. Composition of Output

  • D. Employment and Unemployment

  • E. Prices and Wages

• II. Public Finances

  • A. General Government

  • B. Finances of the State

    • Developments in 1995

    • Developments in 1996

    • The 1997 budget

  • C. Social Security System

    • General reforms

    • Specific measures

  • D. Proposals for Tax Reform

    • Overview of recent developments

    • The case for reform

    • Summary and outlook

  • E. Local Governments

    • Overview

    • Structure of revenue and expenditure

• III. Monetary and Exchange Rate Developments

  • A. The Conduct of Monetary Policy

  • B. Exchange and Interest Rate Developments

  • C. Monetary Aggregates and Domestic Debt

• IV. External Sector

  • A. Trade and Current Account Developments

  • B. Capital and Financial Account Developments

• V. Structural and Other Issues

  • A. Labor Market Policy

    • Unskilled labor, the long-term unemployed, and the young

    • Part-time work and reductions in working hours

    • Other labor market regulations

  • B. Public Enterprises

    • Overview

    • Recent developments

    • Privatization

  • C. Trade and Aid Policies

• Text Tables

  • 1. Central Government–November Supplementary Budget for 1995

  • 2. Social Security: Régime Général

  • 3. Cost of Current Tax Expenditures

  • 4. Local Government Finances

  • 5. Local Government Receipts

  • 6. Local Direct Taxes, 1994

  • 7. Local Government Expenditure

  • 8. Country Shares in Exports of Manufactures of 9 Large OECD Countries

  • 9. Imports of Emerging Countries by Origin

  • 10. Budgetary Cost of Employment Measures for the Private Sector

  • 11. Labor Cost Reduction and Beneficiaries of Employment Measures

  • 12. Public Enterprises

  • 13. Finances of the Public Enterprises

  • 14. Operating Income of Non-Financial Public Enterprises

  • 15. List of Privatizations

  • 16. Privatization Receipts and Uses

  • 17. Performance of the Stock of Privatized Firms

  • 18. Official Development Assistance

• Charts

  • 1. Main Economic Indicators

  • 2. Aggregate Demand Components

  • 3. Household Income and Expenditure

  • 4. Labor Market Developments

  • 5. Inflation

  • 6. Fiscal Indicators

  • 7. Local Government Finance and Employment

  • 8. Exchange Rate Indicators

  • 9. Interest Rates and Inflation

  • 10. Monetary Indicators

  • 11. Trade and the Current Account

  • 12. Unemployment Rate by Education Level

• Boxes

  • 1. Fiscal Decentralization in France

• Statistical Appendix Tables

  • A1. Macroeconomic Performance in Comparison with Germany and G-7 Countries

  • A2. Aggregate Demand

  • A3. Contributions to GDP Growth

  • A4. Household Income and Spending

  • A5. Real Incomes and Selected Ratios of the Household Sector

  • A6. Income and Expenditure of Nonfinancial Corporate Enterprises

  • A7. Saving-Investment Balance

  • A8. Structure of Output

  • A9. Labor Market

  • A10. Price Developments

  • A11. Consolidated General Government Accounts

  • A12. Public Sector Financial Balances

  • A13. Government Debt

  • A14. Central Government Budget

  • A15. Central Government Revenue and Expenditure

  • A16. Finances of Social Security Regimes

  • A17. Social Security, Régime Général

  • A18. Local Government Finances

  • A19. Key Interest Rates

  • A20. Main Monetary Aggregates

  • A21. M3 and Its Counterparts

  • A22. Monetary Base and Its Counterparts

  • A23. Total Domestic Debt and Its Components

  • A24. Summary Balance of Payments

  • A25. Merchandise Trade

  • A26. Direction of Trade

  • A27. Current Account

  • A28. Financial Account

  • A29. Net Foreign Assets Position