France: Another deindustrialisation shock

There is a lot of talk in France about reshoring, or the return of industrial policy. But in reality, the risk is a new wave of deindustrialisation in the aftermath of the COVID crisis. This is because: Throughout the OECD, industrial companies are hit by a significant loss of profitability; To restore their profitability, they will be encouraged to locate their production in countries with low labour costs or in countries where the relocation of productive capacity is advanced; As France is characterised by high labour costs, a low level of automation and low labour force skills, it will probably be one of the unattractive countries for locating production after the crisis.