France: The usual obstacles to potential growth have not appeared after the COVID crisis

Many factors reducing potential growth normally appear after recessions, but these factors have not appeared after the COVID crisis in France. The y are: Loss of productive capital, but investment has recovered quickly and the number of corporate bankruptcies has declined; Loss of human capital, but the employment rate and the participation rate are now higher than their pre-COVID levels; A decline in companies' profitability and a deterioration in their financial situations, which jeopardise their ability to invest, but neither such a decline nor such a deterioration appears, on the contrary; Increasing difficulty for young people in entering the labour market, which is no longer visible today. On the contrary, given the digitalisation of the economy, we can therefore think that France’s potential growth will be higher after COVID than before.