French growth has resumed since 2013, albeit at a mild pace of only 1%. This sluggishness is partly cyclical. It can also be traced back to structural factors, notably the low participation rate and feeble productivity gains. Yet both indicators show room for improvement, suggesting major sources of growth that should be fairly easy to mobilise, assuming the right reforms are implemented. Poor competitiveness is also to blame for the lacklustre pace of growth. An improvement is underway, notably through higher corporate profit margins. Problems persist however, such as the high cost of non-labour inputs and unsatisfactory non-price competitiveness
Egypt is implementing an ambitious programme of economic reforms. Macroeconomic imbalances are being reduced thanks to the pound flotation and some progress in fiscal reforms. Nevertheless, households’ purchasing power is affected by a sharp rise in consumer prices, and the hike in interest rates is a threat for public finances.
