Economic data points to a slower contraction in France and a possible recovery in the country’s economy, along with related exchange traded fund (ETF), next year. But France still has some hurdles to cross.
In the annual Article IV assessment of the French economy, the IMF was pleased with the French government’s implementation of fiscal stimulus and shoring up the banking system, reports Tom Barkley for The Wall Street Journal.
The IMF warns of additional deleveraging in the financial sector and French authorities agree with the need for publicly disclosed stress tests. Further bank losses and write-downs are still possible with bank balance sheets riddled with toxic debt.
The country’s economic contraction is estimated to slow this year; previous forecasts put the decline at 3.0%. The also economy is expected to grow 0.4% in 2010. The government’s main fiscal challenge is to consolidate its public finances since France is heading toward unsustainable debt.