France: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France

January 19, 2021

Preview Citation

Format: Chicago

France: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for France, (USA: International Monetary Fund, 2021) accessed October 19, 2024

Summary

France is among the countries most affected by the global pandemic, both in terms of health and economic impact. Output is expected to have declined by around 9 percent in 2020. The authorities put in place a large emergency fiscal package to address the crisis, focused on preserving jobs and providing liquidity for households and firms, supplemented by additional stimulus measures to support the economic recovery in 2021 and beyond. The banking sector entered the crisis with comfortable buffers and, together with the support of the ECB’s accommodative monetary policy, facilitated the provision of credit to the economy. The increased leverage, however, poses solvency risks to the corporate sector. A partial recovery with GDP growth at about 5½ percent is expected in 2021. Risks to the outlook are large, dominated by the virus dynamics and, together with other risks, tilted somewhat to the downside.

Subject: COVID-19, Financial crises, Labor, Loans, Public debt

Keywords: Banque de France, COVID infection, CR, Growth outlook, HCSF recommendation, ISCR, Repayment moratoria

Publication Details

Pages:

89
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2021/015
Stock No:

1FRAEA2021001
ISBN:

9781513566894
ISSN:

1934-7685

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