France: A new situation

Hélène Baudchon, economist at BNP Paribas, reassesses the economic outlook for France given the impact of the Brexit referendum and fiscal reforms in France.

Baudchon argues that the result of the EU Referendum will lead to long-term uncertainity which will have a knock-on effect on the French economy, nevertheless, she does not think that the effect will be far reaching enough to bring growth to a halt.

With regard to the planned fiscal reforms, Baudchon warns that GDP growth is likely to fall short of government forecasts, thereby undermining the potential effect of future reforms.

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