OECD Economic Surveys: France 2021
The French economy rebounded quickly following the COVID-19 crisis, in particular thanks to the acceleration of the vaccination campaign and strong public support measures. Rapid and effective implementation of the recovery and investment plans would help support stronger and more sustainable growth. However, public spending has reached an exceptionally high level, with a mixed performance, which calls for reorganising the fiscal framework to ensure the sustainability of public finances. Education and labour market integration policies will need to be better targeted, with specific training efforts for young people and older workers. Reinforced support for the most vulnerable and less qualified should reduce inequalities, including territorial ones. The transition to a greener economy is the other key challenge that France must take on. Strengthening green investments is crucial to accelerate the pace of emission cuts, as well as putting in place the necessary incentives to foster behavioural changes, if necessary with targeted support for the most vulnerable.
SPECIAL FEATURE: STEERING THE RECOVERY TOWARDS AN ECOLOGICAL TRANSITION
Also available in: French
Key policy insights
The French economy has bounced back following an unprecedented contraction during the COVID-19 pandemic. The fall in activity in 2020 was the sharpest since the end of the Second World War. As in other OECD countries, successive waves of COVID-19 cases reduced life expectancy by around half a year in 2020 (close to the OECD average; Figure 1.1). Economic activity and employment have bounced back swiftly since May 2021. Yet, the recovery remains conditional on the full normalisation of the health situation and an effective shift to more inclusive and sustainable growth once the remaining health restrictions are lifted.
Also available in: French
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