Going for Growth - France

Page 1

2ď ź

France The gap in GDP per capita relative to the upper half of OECD countries continues to widen. Potential GDP per capita growth has fallen due to slowing employment growth and weak labour productivity gains. Inequality, as measured by the Gini index, has been contained over recent years and remains below the OECD average. Lower-income households hold a larger share of national disposable income than on average in the OECD. Greenhouse gas emissions per capita are relatively low, but exposure to air pollution is elevated in some cities. The government increased the role of social dialogue, improved legal certainty for dismissals and streamlined worker representation in 2017, addressing the respective 2017 priority. It also reduced social contributions, while increasing in-work benefits. The 2018 reform of lifelong learning, apprenticeships and additional public spending will ease access to training for low-skilled and unemployed workers. In disadvantaged neighbourhoods, class sizes in the first grades have been halved and additional funding will be available for pre-school. The reduction of the compulsory school age to three years will also reduce early social disparities. The government ordered specific expenditure reviews to lower public spending. Quickly implementing structural reforms to raise the efficiency of public spending and improve its targeting would improve well-being, and help lower the tax burden. Reducing the recurrence of short-term contracts and improving youth labour market integration would raise inclusiveness. Developing the foreseen quality control system for training providers would ensure an effective use of lifelong training. Lowering entry and firm growth barriers would improve resource allocation, productivity and employment. Growth performance, inequality and environment indicators: France A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio

C. The gap in GDP per capita is sizeable 2002-08 1.0 0.1 0.2 0.1 -0.2 1.1 0.5 0.6 -0.1

Gap to the upper half of OECD countries5

2012-18 0.9 0.3 0.0 0.1 0.2 0.6 0.2 0.4 0.0

Per cent 15

10

4

GHG emissions per capita (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)

GDP per hour worked

5

0

B. Inequality and environment

Gini coefficient3 Share of national disposable income held by the poorest 20%

GDP per capita

Level

Annual variation (percentage points)

2016 29.1 (31.7)*

2013-16 0 (0)*

8.8 (7.6)*

0 (0)*

2016 6.4 (10.9)* 0.2 (0.3)* 0.9

Average of levels 2010-16 6.7 (11.3)* 0.2 (0.3)* 1.0

-5

-10

-15

-20

Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933954895


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.