The IMF states that falling tax revenues in France will lead to “uncomfortably high fiscal deficits,” and more stimulus plans should be small, writes Lesley Wroughton for Reuters. Lower output could drop tax revenues in 2009/10 and will increase the country’s deficit.
Further exacerbating the situation is the Eurozone increase in unemployment, which could weaken private consumption. Unemployment is at a 10-year high.
- iShares MSCI France Index (EWQ): up 2.4% year-to-date
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Max Chen contributed to this article.