Country report France 2017

Country report

  • France
  • Agriculture,
  • Automotive/Transport,

16th May 2017

With more than 58,000 cases in 2016 the number of business insolvencies was still about 5% higher than before the start of the credit crisis in 2008.

France key indicators

 

France industries performance forecast

 

The insolvency environment

Despite decreases in 2016 and 2017, the insolvency level remains high 

French business insolvencies decreased by about 8% in 2016, and in 2017 another 5% decline is expected, in line with the on-going (albeit modest) economic rebound. However, with more than 58,000 cases in 2016 the number of business insolvencies was still about 5% higher than in 2008.

 

French business insolvencies

 

Economic situation

Growth expected to remain below eurozone average

 

France real GDP growth
After several years of feeble GDP increases of less than 1%, in 2015 and 2016 the French economy grew 1.2% annually. However, this growth rate remained below the eurozone average (1.6% growth in 2016).

 

In 2017 and 2018 French economic growth is expected to increase only modestly, by 1.3% and 1.4% respectively; again below the eurozone average. Productivity remains an issue in the French manufacturing sector.

Unemployment, at least, shows a decreasing trend, which should benefit private consumption.

 

France fiscal balance
The 2008 credit crisis, subsequent government stimulus measures, and France’s only modest recovery have led to a sharp increase in public debt in recent years, up to 93% of GDP in 2016 from 67% of GDP in 2008. The French government has repeatedly missed meeting the Maastricht deficit threshold of 3% of GDP. Despite some austerity programmes, more measures to curb public spending are required, as public spending in France is the highest in the eurozone (57% of GDP).

 

 

 

 

 

Disclaimer

The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.