Nevertheless, the IMF advised the government to take on further structural reforms, such as trimming public spending, to bolster growth. Gurria also mirrored the IMF’s sentiments for greater structural reforms, but it will take time for the policies to affect the economy.
“Now it’s structural policy that you (France) need to focus on and that takes time,” Gurria said on CNBC. “It’s about education, innovation, flexibility in the labor and product markets. It’s about regulation and more competition and how you deal with your financial sector and taxation… These things all have one thing in common, which is that they take time to show results.”
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Max Chen contributed to this article.