The Economy of France News

France is one of the largest countries in Europe today. However, this is a nation that has struggled with economic growth recently. There are several factors at play with the weak economic growth numbers. First of all, France has started to cut back on immigration in response to the terror attacks in Paris. This is hurting the overall population growth of the country. Not only that, but taxes in France are some of the highest in Europe. Countries have no incentive to invest in this nation and that is hurting the number of new jobs coming in.

Taxes

Taxes are one of the most important variables in any economy. In France, there are a lot of people who feel like they are taxed too much. High taxes and low population growth are two variables that are difficult to overcome. The government cannot just lower the overall tax rate because they are currently running a deficit right now.

Along with the high taxes, economic growth has started to decline. Fewer people are graduating with good jobs from college, and personal debt levels are at their highest in years. All of these variables are affecting the French economy in different ways. In a recent news report, the economy of France was ranked as one of the weakest in all of Europe.

Future Growth

There are a lot of things that need to change in France if economic growth is going to increase in the future. The government has to figure out a way to step back and let the private sector work. With lower tax rates, companies would be encouraged to bring in more jobs than ever before. This is an issue that a lot of people are trying to figure out right now. Not only that, but the population needs to start growing again.

If France is going to continue to be tough on immigration, this is something that will have to be addressed. The birth rate of people who were born in France is already low like the rest of Europe.

Next Steps

France is a country that has a lot of positive things going on. However, the economy is stuck without a lot of growth right now. This is not a sustainable path that the country is on, and the government must figure out a way to get things working again for the people.

Read More: http://money.cnn.com/2017/06/12/news/economy/france-macron-election-reforms/index.html

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