Report
Patrick Artus

France: How to avoid zero growth in 2021 and 2022?

There is a very high risk of growth in France being virtually zero in 2021 and 2022, due to the fall in investment and the loss of productive capital, bankruptcies, the loss of human capital and the rise in structural unemployment, and the proliferation of overindebted zombie firms. What economic policies might avert this stagnation of the French economy over the next two years? It is important to not try to save all companies or all jobs within all companies, which would give rise to myriad zombie firms; the focus needs to shift from protecting jobs to protecting people; Help the economy move up the value chain (targeted reshoring, aid for automation and the development of new industries), bearing in mind that labour-intensive industries cannot be reshored; Scale up the vocational training and upskilling system so that it can accommodate the huge number of people who will have to change economic sector; Stop y outh unemployability from getting worse by continuing to train those who are unable to enter the labour market.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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