The 2.3% increase in the power of the French acaht will allow a 1.3% increase in growth for the years 2019 and 2020. But we must not be too happy about this good news.
The purchasing power of the French will grow by 2.3% this year: France is widening the gap with its European neighbors.
Yes our economy is running at a faster pace than our neighbors for a big reason: purchasing power is rising and this is reflected in the consumption figures. The Banque de France, which makes these forecasts, anticipates a gain in purchasing power lower next year, + 1.4%. But that remains positive. And above all, what we see is that the behavior of the French changes slowly: traditionally, they tend to save money when they earn a little more. For lack of confidence in what the future holds. But there, as the unemployment backs down, the confidence returns little by little and the French consume more.
That's what supports growth ... It's sustainable?
It's going to last next year. It will support the activity: we expect a growth of 1.3% this year and next year. By contrast, in Germany, growth is almost three times lower: 0.5% this year. We can rejoice ... but not too much. Germany is worse off because it is the world's leading exporting power and the trade war is directly affecting it. We are better because we are smaller exporters, and also because we have left our deficits a little bit. Morality: it is our faults that support growth. It's not very