**French growth reaches 7% in 2021, a historic result**
This figure, the highest in 52 years, places France among the most dynamic countries in Europe.
After plunging by 8% in 2020, the first time this has happened since the Second World War, French growth has taken off again just as spectacularly in 2021. According to the first estimates of INSEE, published this Friday, January 28, the French GDP has increased by 7% over the past year. If this figure is confirmed, it would also be the strongest annual growth recorded in France for 52 years, and one of the highest in Europe.
Questioned this morning on the set of France 2, the Minister of the Economy, Bruno Le Maire, described this figure as a “spectacular rebound” that “erases the economic crisis”. He took the opportunity to highlight the action of the majority during this crisis, responsible according to him for this recovery: “It proves that the government’s policy is effective,” he said.
In its latest forecast dated mid-December, the National Institute of Statistics anticipated a growth of 6.7% in 2021, a figure similar to the forecast of the Bank of France, and which confirmed that the French economy had recovered its level of activity before the epidemic.
Many indicators are indeed in the green, starting with those of employment published Wednesday. The number of people registered in category A at Pôle emploi has fallen by almost half a million in 2021. Never before has such a significant drop in the number of job seekers been recorded over a year since these statistics on the number of job seekers at the end of the month (DEFM) have been published. That is, since… 1996.
**Public finances deteriorate**
If France is one of the most dynamic countries, the whole of the Old Continent is benefiting from a catch-up effect. “Europe is doing very well,” said the Minister of the Economy. This is due to the “coordination” that the 27 countries have shown, he added, citing in particular the issuance of common debt.
However, all this good news comes at a cost. In total, the State will have spent last year a little more than 60 billion euros, according to figures recently given by the Minister of Public Accounts Olivier Dussopt, at the cost of a public deficit that should be around 7% and a public debt around 113%.
Another source of concern: inflation. “A risk” conceded Bruno Le Maire, who compared the current situation to the 1973 oil shock. “Gas prices have quadrupled in one year,” he stressed to justify his remarks. However, the Minister did not want to fall into an alarmist speech “we will not have the same consequences”. He recalled the action of the State to limit this phenomenon particularly visible in the costs of electricity or fuel: “it is the price of energy that explains half of the inflation”, he illustrated.
He conceded that these results made the demands for wage increases “legitimate”. However “the State has done its part”, he defended, “it is now the turn of companies” to redistribute part of the fruits of growth.
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**French growth reaches 7% in 2021, a historic result**
This figure, the highest in 52 years, places France among the most dynamic countries in Europe.
After plunging by 8% in 2020, the first time this has happened since the Second World War, French growth has taken off again just as spectacularly in 2021. According to the first estimates of INSEE, published this Friday, January 28, the French GDP has increased by 7% over the past year. If this figure is confirmed, it would also be the strongest annual growth recorded in France for 52 years, and one of the highest in Europe.
Questioned this morning on the set of France 2, the Minister of the Economy, Bruno Le Maire, described this figure as a “spectacular rebound” that “erases the economic crisis”. He took the opportunity to highlight the action of the majority during this crisis, responsible according to him for this recovery: “It proves that the government’s policy is effective,” he said.
In its latest forecast dated mid-December, the National Institute of Statistics anticipated a growth of 6.7% in 2021, a figure similar to the forecast of the Bank of France, and which confirmed that the French economy had recovered its level of activity before the epidemic.
Many indicators are indeed in the green, starting with those of employment published Wednesday. The number of people registered in category A at Pôle emploi has fallen by almost half a million in 2021. Never before has such a significant drop in the number of job seekers been recorded over a year since these statistics on the number of job seekers at the end of the month (DEFM) have been published. That is, since… 1996.
**Public finances deteriorate**
If France is one of the most dynamic countries, the whole of the Old Continent is benefiting from a catch-up effect. “Europe is doing very well,” said the Minister of the Economy. This is due to the “coordination” that the 27 countries have shown, he added, citing in particular the issuance of common debt.
However, all this good news comes at a cost. In total, the State will have spent last year a little more than 60 billion euros, according to figures recently given by the Minister of Public Accounts Olivier Dussopt, at the cost of a public deficit that should be around 7% and a public debt around 113%.
Another source of concern: inflation. “A risk” conceded Bruno Le Maire, who compared the current situation to the 1973 oil shock. “Gas prices have quadrupled in one year,” he stressed to justify his remarks. However, the Minister did not want to fall into an alarmist speech “we will not have the same consequences”. He recalled the action of the State to limit this phenomenon particularly visible in the costs of electricity or fuel: “it is the price of energy that explains half of the inflation”, he illustrated.
He conceded that these results made the demands for wage increases “legitimate”. However “the State has done its part”, he defended, “it is now the turn of companies” to redistribute part of the fruits of growth.
Translated with http://www.DeepL.com/Translator (free version)