The institution tables on an increase in GDP stronger than expected in 2021, of the order of 6.8% instead of 6.3%, and in 2022, to 4.2% against 4%.
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[p> Congratulations and recommendations, including controlling public expenditure and reduce debt. This is the Health Bulletin issued, Thursday, November 18, by the Organization for Economic Co-operation and Development (OECD) on the situation of France, which should know, according to its assessments, increased growth than expected in 2021, of The order of 6.8%, instead of 6.3%. In 2022, the gross domestic product (GDP) could increase by 4.2%, not 4%, as envisaged in September.
For 2021, the organization is therefore more optimistic than INSEE and BERCY, which expects growth of 6.25%. On the other hand, it is on the same wavelength that the Banque de France, for which it could reach 6.75% over the year.
After the historic recession of 8% in 2020, this strong recovery was made possible by “the economic policies that reacted quickly and massively to the crisis,” says the note. “Public support during the crisis [related to CVIV-19] has been impressive and very effective,” admitted the Secretary General of the OECD, Mathias Cormann, during a press conference conducted with the Minister of the Economy, Bruno the Mayor. So “impressive” – and that’s where the finding takes another turn – that he has led to a sharp rise in the public deficit and the public debt, recalls the OECD, which is worried about it.
A 115.2% of GDP in 2020 and 2021, the French public debt is established at a “historically high” level; The budget deficit represents 8% of GDP and the public expenditure rate is now “the highest of the OECD”, depending on the calculations provided by the organization. A finding all the more worrying, according to the institution, that “the [public] expenditure structure is not focused enough towards investment”. In fact, pensions are the first public expenditure, prior to wages, health expenditures and education, investment that is only fifth. “It is urgent to ensure the effectiveness of public spending,” launched Mr. Cormann to the Mayor.
“The French people are determined to repay his debt”
Not without observing that the OECD “validates” economic policy choices made during this crisis and that it is “much more optimistic” than the executive on growth prospects, the tenant of Bercy joined the position Mathias Cormann on the issue of public finances. After doing the “strategic choice” to “spend public money to protect employees and businesses rather than repair”, France “must enter into a new phase where it will resolutely and progressively the restoration of public expenditure will resolutely and progressively French, “he insisted. The return of growth, the reforms incurred (especially that of unemployment insurance) as well as, on a more technical level, the adoption of a multiannual rule of public spending, such as the one that was voted By Parliament on Thursday, November 18, should make it possible to achieve it.
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