In France, the share of labour-related expenditure in the value added of non-financial corporations has been relatively stable since 1990, as has that of net wages. This stability masks changes that occurred in phases and which were connected, inter alia, with economic shocks and tax reform. The capital share has also been stable with an increase in dividends being offset by a fall in interest pai... Lire la suite
In response to rising mortgage debt for households, regulation of mortgage lending conditions for households was introduced in France by the Higher Council for Financial Stability. An assessment has shown that this measure, which became binding in 1 January 2022, has reduced the average DSTI ratio while increasing the average mortgage maturity. However, the effect on property prices has been limit... Lire la suite
Rising tariffs are projected to hinder global economic growth and trade in 2025 and 2026. Emerging economies are expected to continue driving global growth, while advanced economies gain support from monetary easing policies. Trade policy developments are the primary downside risk to the economic forecast.... Lire la suite
Before the war in Ukraine, companies in the defence technological and industrial base had a weaker financial and economic position than companies in the rest of the economy, including thinner margins and higher debt levels. Since 2021, however, larger European defence budgets have improved the growth outlook and financial health of these companies, while also increasing their investment needs.... Lire la suite
Having initially focused on supporting the birth rate, family policy now has three goals: contributing to offsetting family expenses, helping vulnerable families and ensuring a work-life balance. To this end, it has a large number of schemes that are sometimes difficult to understand. It nevertheless carries out significant redistribution from childless families to other families, especially large... Lire la suite
International industrial policy takeaways since 1945 suggest that the identification of market opportunities, competition between players and technology options, and maintaining high performance standards are important factors for success. In France, industrial policy stands out for the significance of vertical interventions and the focus on a small number of large firms.... Lire la suite
In China, 177 million workers live in places other than the area registered in their hukou, China’s “internal passport”. These migrant workers are employed in flexible, low-skilled jobs and have limited access to healthcare, pensions and public education. This situation boosts the competitiveness of China’s growth model, but breeds inequality and slows human capital accumulation.... Lire la suite
The 2023 general government deficit stood at −5.5% of GDP compared to a forecast of −4.9% in the 2023-2027 Public Finance Planning Act. This difference essentially concerns aggregate taxes and social security contributions, for which the elasticity in relation to economic growth was at a record low. This decline has also significantly affected the projection for 2024 which was revised to −6.1% in... Lire la suite
Despite major uncertainty in summer 2022, when the 2023 Budget Bill was being drafted, the French Treasury forecast GDP growth of 1.0%, almost matching the final estimate from INSEE (0.9%). The scenario’s key assumptions, in particular an uninterrupted energy supply and an upturn in aircraft manufacturing and electricity generation, were confirmed. The 2024 Budget Bill forecast for GDP growth for... Lire la suite
The structure of the artificial intelligence value chain is a determinant of the innovation landscape. Tech giants play a major role in this landscape given their presence across the value chain. Although new entrants are challenging this status quo, it raises questions about economic efficiency, fair competition and sovereignty. France has major competitive advantages in this race, including data... Lire la suite