The government of French President Emmanuel Macron needs to make good on its reform promises if it wants a shot at boosting growth durably, the International Monetary Fund said Thursday. As the French economy picks up after a long period of slow growth, conditions are now favourable for Macron''s plan to overhaul the labour market, cutting deficits and lowering taxes to make a real impact, the IMF said in a report on France.
Now everything is down to those plans becoming reality, the lender cautioned.
"Medium-term prospects will critically depend on the implementation of the reform agenda," it said.
Meanwhile, the French economy is picking up pace, with the IMF projecting 1.6 percent growth of the gross domestic product (GDP) this year, rising to 1.8 percent in 2018, after just 1.2 percent last year. The report said implementation of the programme will be the "key challenge", especially with regards to fiscal overhaul and labour market reforms.