The second largest economy in the eurozone is expected to grow by 6.3 percent this year. This was stated by the French central bank, which improved its outlook compared to June. It originally expected France’s economic performance to increase less.
Back in June, the Banque de France forecast economic growth for this year at 5.8 percent. Now, however, she has come up with a more optimistic forecast, which expects growth to be half a percentage point stronger. The improvement in outlook is mainly due to the relatively rapid progression of coronavirus vaccination, which has led to the release of anti-epidemic restrictions. Most of the closed economy could thus return to normal operation.
The French central bank has also issued a forecast of economic growth for the next two years. On the contrary, it is a bit more pessimistic than the original forecast. The economy is expected to rise by 3.7 percent in 2022 and by 1.9 percent in 2023, with initial estimates of 4.1 and 2.1 percent.
However, France’s economy could probably grow even more massively, but many companies report problems with labor shortages or supplies. Nevertheless, unemployment will remain above eight percent, the central bank predicts.