France relaxes the corona measures and strengthens the economy.
(Photo: dpa)
Paris In 2021, France recorded the strongest economic growth in half a century. The economy picked up by 7.0 percent last year – and thus more strongly than since 1969, as the national statistics office Insee announced on Friday. The numbers put President Emmanuel Macron in a good starting position a good two months before the election.
“The French economy has recovered spectacularly and that has wiped out the economic crisis,” said Finance Minister Bruno Le Maire. “There are still some areas that are struggling, like tourism and hospitality. But most are recovering very strongly and that creates jobs.”
Even in the final quarter from October to December, the gross domestic product (GDP) rose by an unexpectedly strong 0.7 percent compared to the previous quarter, despite the Omicron wave. Economists surveyed by the Reuters news agency had only expected an increase of 0.5 percent, after an increase of 3.1 percent in the summer. Consumer spending in particular drove growth. In addition, companies supported the economy because they replenished their inventories.
Because of the pandemic, GDP in the neighboring country collapsed by eight percent in 2020. The French economy has now practically made up for this decline. For the coming year, Paris expects growth of 2.4 percent.
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The German economy, on the other hand, slipped back into a corona low. The increase in the number of infections and the associated tightening of measures stopped the economic recovery at the end of the year, as the Federal Statistical Office announced on Friday. After a decline in GDP in the fourth quarter of 2021 compared to the previous quarter by 0.7 percent, economists believe that a further decline is possible in the coming months.
Despite record incidences, everyday life is largely normal even during Omicron
Unlike Germany, France had recently tightened the corona measures only very slightly. Despite record incidences, everyday life is largely normal, only clubs and discos have been temporarily closed. However, many areas of public life are only open to those who have been vaccinated or have recovered.
Macron’s government announced surprisingly positive labor market figures on Wednesday. The number of registered job seekers fell by around 520,000 to 3.3 million last year and is now at its lowest level since 2012.
Macron has not yet officially declared his candidacy for the presidential election in April, but there are no doubts about his ambitions for a second term. The head of state has been trying for months to praise his economic record. In the current election campaign, however, hardly any economic issues are discussed. The focus, on the other hand, is on issues such as dealing with the unvaccinated, internal security and migration.
The president is clearly in the lead in polls for the first ballot. The right-wing populist Marine Le Pen and Valérie Pécresse from the middle-class conservative Republicans are fighting for second place in the runoff. Pollsters currently see Macron as the favorite in the runoff election, but it could be tighter for the incumbent in a possible duel with Pécresse.
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