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FRANCE - OECD.org
3. DEVELOPMENTS IN INDIVIDUAL OECD AND SELECTED NON-MEMBER ECONOMIESOECD ECONOMIC outlook , VOLUME 2018 ISSUE1 PRELIMINARY VERSION OECD 2018142 FRANCEE conomic growth is set to return to a solid pace of close to 2% over 2018-19 thanksto strong external demand and robust business confidence. Gradual corporate tax cutsand supportive financing conditions will underpin business investment growth. Lowerlabour taxes and labour market reforms should encourage job creation and boosthousehold consumption and inclusiveness. Inflation is projected to pick up, supportedby the firming of the economy and an increase in fiscal stance is projected to be broadly neutral. High growth, lower wage andhousing subsidies, as well as tighter controls on sub-central government spending,should broadly compensate a decline in household and business taxes. However, furthercuts in non-priority spending and an improved effectiveness of social expenditures andinfrastructure investment will be needed to sustainably finance lower taxes.
3. developments in individual oecd and selected non-member economies oecd economic outlook,volume 2018 issue1–preliminary version © oecd 2018 143 france: demand ...
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