This is due, in large part, to well balanced macro-economic policies, link to an improved fiscal situation, and appropriate monetary policy, as well as reform to encourage innovation, reducing charges on low salaries and finally, reduction and better management of working hours. Also, in spite of the slowdown at the beginning of the year, the unemployment rate is steadily diminishing. The evident upward trend in investment is fast eradicating the lag left-over from the early 90's conferring the French economy with strong and lasting growth. The good outlook for Europe is in contrast with the uncertainties still weighin on Japan, despite recent more favorable indicators. Self-sustained growth has not yet taken off.
Internal demand is fragile, because of the increase in unemployment and a downward revenue trend.
External demand can thus play an important role on the condition that the value of the yen ceases to rise. Strong American growth remains impressive. The solf landing sought by US authorities shouldn't mask the performance of the last years. The emerging and developing economies are gradually recovering, after having traversed a very difficult and uncertain period as a result of the financial crises and of the 1998 decline in commodities prices. But improvement remains uneven.