In France, a partial success in 2019

Despite both internal and external headwinds, that led to a strong deterioration in growth in the fourth quarter, French activity remained resilient in 2019 (at 1.2%), characterized by robust private consumption and sustained business investment. Residential investment continues to grow, and inflation was moderate in 2019, averaging 1.1% over the year. In France, the year was marked by social conflict s on several fronts , starting with the yellow vest movement’s weekly protests at the end of 2018 which lasted until December 2019 . A general strike against the pension reform then got under way on 5 December 2019, breaking records in terms of longevity, with around two months of demonstrations and a noticeable economic impact . Regarding the labour market, unemployment remains high in France despite improvements over the past two years. This high level is partly explained by high structural unemployment that results from the persistent rigidities of the labour market. French public finances also face a period of uncertainty. While the fiscal deficit is expected to fall below 3% of GDP in 2020, the ambition of lowering the public debt is likely to be pushed further back into the future. This Special Report provides an overview of the economic indicators for 2019 and looks ahead to economic activity in 2020 (see Chart 1 ) . Growth is expected to slow slightly to 1.2% this year, while inflation is expected to remain stable at 1.1%.