France: Debt Woes are Overstated

3 min read

Synopsis: Debt levels in the public sector have been on an uptrend since the GFC, matching the trend seen in most advanced economies. Nevertheless, the statistic in isolation paints an incomplete picture. Recently enacted labor market reforms and a renewed focus on an innovation-driven model to growth suggests risks are tilted to the upside. Furthermore, these could also be the precursor to higher wages and recovery in productivity. Should upside risks materialize, the potential growth rate could negate the impacts of rising debt levels further. France public debt has risen substantially following the 2008 GFC with the fiscal deficit breaching…...

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Henri Kouam Tamto Henri Kouam Tamto is a macroeconomist focusing on Oil, FX and Credit markets in Advanced and emerging market economies. Working both independently and as part of a team, Henri forecasts and writes both thematic as well as research notes on economic data releases, Central bank policy, and global commodity prices. He also has a strong interest in trade policy and the implications of globalization for countries and asset classes.