France has an enviable standard of living (Figure 1, Panel A), thanks to high labour
productivity, owing in part to a well-educated work force. Inequality is not excessive (Panel B),
and the country has come through the crisis without suffering too heavily. The government’s
cost of borrowing remains low. The banking system is sound, and, in contrast to some other
countries in the euro area, the supply of credit does not seem to be constraining economic
activity, even for small and medium-sized enterprises. France also stands out in terms of
work-life balance, health status, social connections and environmental quality.
Figure 1. Most social indicators are sound, despite weak growth in per capita GDP