The pandemic caused a deep economic and social recession
Improving employment and productivity are long-term challenges
The job retention scheme contained the employment fallout
The shock on household income was limited, leading to large savings
The recovery plan emphasises public investment
Support for business liquidity was effective
The vaccination programme has been scaled up but remains perfectible
The economic impact of the epidemic and containment measures has fallen
Fiscal policy and domestic demand are driving the recovery
Business activity remains very uneven
The labour market has been seriously affected
Core inflation will remain moderate
Export performance is disappointing
Structure of exports
Prior to the crisis, the risks related to public and private debt were high
Non-financial gross corporate debt has risen rapidly
Housing market trends
The deficit and public debt are historically high
Putting debt on a sustainable path requires structural reforms
Public spending efficiency must improve
Public spending on pensions is set to decline alongside replacement rates
French municipalities are fragmented
VAT revenue shortfalls are large
Factor allocation could be improved
Bankruptcy procedures are well designed but lengthy
The tax bias towards debt financing remains significant
The polarisation of the labour market and the crisis weigh on the low-skilled
Young people struggle on the labour market
Management practices are still formal
Business investment has stagnated, despite generous R&D support
The take-up by SMEs of R&D support is low
The diffusion of digital technologies is uneven
The take-up of digital training remains low
Product market regulations remain stringent in some sectors
The school system perpetuates significant disparities
Changes in income disparities between urban and rural areas
Past vulnerabilities and the effects of the 2020 crisis overlap imperfectly
The risks of corruption are perceived as relatively contained