Skip to comments.IMF warns of negative spiral in France as recession looms again
Posted on 07/05/2014 5:06:52 PM PDT by Lorianne
France has sunk into an economic malaise and could take years to climb back out ___ France is on the cusp of a fresh recession as services contract sharply and the country braces for yet another round of austerity cuts, with record jobless levels likely to bedevil Francois Hollandes presidency for years to come.
Markits PMI services gauge for France fell for the third month to 48.2 in June, pointing to an outright fall in GDP following zero growth in the first quarter.
The International Monetary Fund cut its growth forecast this year from 1pc to 0.7pc, warning that there would be no appreciable decline in French unemployment until 2016. Volatile and uneven leading indicators point to the risk of a stalled recovery, it said.
The IMF said public debt should peak at 95pc of GDP next year but a growth shock would push it to 103pc by 2016. The Fund warned of a negative spiral of low growth and falling inflation that is pushing up real borrowing costs and further choking investment, already dismally weak. Core inflation was 0.3pc in May.
The economic relapse is a political disaster for Mr Hollande, already the least popular leader in modern times with a poll rating of 23pc, and reeling from a crushing defeat by the far-Right Front National in European elections.
(Excerpt) Read more at telegraph.co.uk ...
You know raising taxes some more might just fix this. sarc/.
French led IMF with Christine Lagarde at the helm has the solution
(no worries, all possible scenarios have been war-gamed by our overlords)
Where is Obama when he is really needed to help poor old France. Since he’s unavailable I’ll pass on the sort of advice he would give if he wasn’t so darn busy with all those kids coming over the border - and golf of course.
1. Raise taxes on the rich.
2. Raise the Minimum Wage.
3. Make going out of business a felony.
4. Outlaw layoffs.
5. Outlaw firings.
6. Make July and August mandatory paid vacation months.
7. Require half of all businesses have a female CEO.
8. Raise taxes on the rich again if income equality is not achieved.
Luckily they have a socialist/communist president that will pull them out of that downward spiral ... sort of like one of those comic book superheros.
Lucky French. They are in the positive.
Coming to the USA soon if we do not get our own fiscal house in order and quit spending billions on those “so called” good illegals coming across the boarders and spending billions on this greast welfare state handing out money to those that don’t want to work.