A moderate recovery is underway, but the recession will leave lasting traces. France is in an intermediate position amongst OECD countries in terms of the impact of the crisis. Various factors, including an appropriate macroeconomic policy response, enabled the economy to withstand the shock. Yet the financial and global nature of the recession would suggest that the recovery is likely to be moderate, with GDP growth rebounding gradually to reach 2% in 2012. This pace will doubtless be insufficient to bring joblessness down quickly. Export performance improved in 2010, and private investment should take over as the prime engine of growth. Although there is a housing shortage in some strained areas, the property market would probably be vulnerable if rates were to climb back up. Against the backdrop of bond-market turmoil in the euro area, the highest priorities are fiscal consolidation, raising employment rates and spurring productive supply.