2023-07-17 17:15:40
Rising economic growth
Economic growth forecast in France for this year is 2.3%, according to a study conducted by the IMF. This forecast is up from the previous year. This growth was driven by an increase in exports of 5% and a rise in auto sales of 15%, although less optimistic forecasts have been issued due to a 1.5% increase in the unemployment rate recently. recorded. The IMF has underlined the need to continue structural reforms for continued economic growth in the years to come.
Public expenditure represents 47% of GDP in France. Although this is high, the country continues to invest in start-ups, which have grown by 30% over the past three years. Tech companies, in particular, have doubled their market capitalization over the past five years. This reflects a business-friendly environment and a clear desire to stimulate innovation and economic growth.
Exports and tourism: an unprecedented success
French exports experienced a spectacular growth of 5% compared to the previous year. Cars, pharmaceuticals and cosmetics were the most exported products and drove this growth. This is probably linked to France’s attractiveness, particularly to foreign visitors who reached a record 90 million last year. The number of tourists increased by 10% in 2018, boosting the country’s tourism economy.
Despite this, the price of oil has increased by 10% in the last six months, which might lead to increased transport costs and negatively impact exports in the future.
Inflation and unemployment on the rise
Inflation in France is currently 1.8%. This is slightly above the 1.6% target set by the European Central Bank. Rising fuel and electricity prices, as well as rising rents and school fees, contributed to this increase.
The unemployment rate in France increased by 1.5% during the last quarter. Although the reforms implemented by the French government have contributed to the creation of new jobs, much remains to be done to reduce the unemployment rate, which remains high in France compared to other countries of the European Union.
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