Boston, MA -- (ReleaseWire) -- 06/11/2014 -- While the rest of the eurozone is showing early signs of recovery, the French economy continues to lag behind the region. While the improving regional economic outlook may provide some limited upside potential, this might not be sufficient to drive a recovery in French manufacturing unless the country first addresses its outstanding competitiveness issues.
While we are likely to see a gradual increase in positive rhetoric towards structural reforms, Hollande is unlikely to become an ambitious reformer of the French model. While we expect some reformers will take baby steps in the right direction, the ability of Hollande to implement sweeping reforms will be restrained by divisions within his own party and core support base, and resistance from the proliferation of special interest groups which will make unilateral reform a troublesome and compromised process.
View Full Report Details and Table of Contents
We expect pressures on the government to engage in more concerted fiscal consolidation to mount over the coming quarters, particularly as lower growth begins to translate into lower government revenues. While France has thus far not fallen prey to the bond vigilantes like the peripheral countries of the eurozone, the country nonetheless has one of the largest public sector debt piles in Europe and remains susceptible to contagion effects.
Major Forecast Changes
We have revised our debt forecasts, and now expect the government debt load to reach 100% of GDP by 2018 due to a lack of political willpower to rein in the fiscal deficit combined with weak growth.
Key Risks To Outlook
Downside Risks To Fiscal Forecast: The possibility of a further intensification of the eurozone sovereign debt crisis and the potential need for state-led capital injections in the domestic banking sector keeps the risks to our fiscal deficits over the medium term firmly to the downside.
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Country Reports research reports at Fast Market Research
You may also be interested in these related reports:
- Oman and Yemen Business Forecast Report Q3 2014
- Kuwait Business Forecast Report Q3 2014
- Serbia, Montenegro and Kosovo Business Forecast Report Q3 2014
- Brazil Business Forecast Report Q3 2014
- Chile Business Forecast Report Q3 2014
- Hong Kong Business Forecast Report Q3 2014
- Hungary Business Forecast Report Q3 2014
- Philippines Business Forecast Report Q3 2014
- Botswana Business Forecast Report Q3 2014
- Pakistan Business Forecast Report Q3 2014