Higher productivity gains and additional demand would be needed to restore French public finances

To move from a scenario in which France's growth between now and 2027 is slightly less than 1% per year to a scenario of growth of at least 1.5% per year, which would reduce the fiscal deficit in 2027 by nearly 1.5 percentage points of GDP, the following would be needed: First, productivity gains would have to pick up, to provide additional supply of goods and services; Second, demand would have to increase faster, with a fall in the household savings rate and faster growth in corporate investments. If only productivity picks up, and not demand for goods and services, there will be an oversupply of goods and services and no stimulation of growth; if only demand picks up, and not productivity, there will be a deterioration in foreign trade and no stimulation of growth.