Medef chief sees signs of slowdown in France’s economy
Patrick Martin, the head of France’s Medef business lobby group, said on Monday that there were signs of a slowdown in business activity in France and interest rates were also weighing on businesses. He told France 2 TV that France’s economic growth was resilient in the second quarter, but he added that there were nevertheless indications of slower activity. “But we see things are slowing down, investment is slowing down, consumption is slowing down” he said. “The issue of high interest rates is also weighing on business activity”, he added.
Medef is the largest employer federation in France, representing more than 750,000 companies from various sectors and regions. It advocates for pro-business policies and reforms to boost the competitiveness and attractiveness of the French economy.
France faces additional risks from lagging behind rivals
Martin said that France was facing additional risks if the government did not manage to keep up with large-scale investment schemes seen in rivalling economies, such as the United States and Germany. He said that France needed to invest more in innovation, digitalization, infrastructure, and green transition to remain competitive and create jobs.
He also urged the government to reduce public spending and debt, which have soared during the COVID-19 pandemic. He said that France had one of the highest public spending ratios in the world, and that it was unsustainable in the long term. He called for a “collective effort” to reduce the public deficit and restore fiscal credibility.
France’s economic outlook remains uncertain amid COVID-19 variants
France’s economic recovery from the COVID-19 crisis has been uneven and uncertain, as the country faces new challenges from the emergence of new variants of the virus. The Delta variant, which is more contagious and resistant to vaccines, has caused a surge in infections and hospitalizations in recent weeks, prompting the government to impose new restrictions and health measures.
The government has also launched a vaccination campaign to protect the population and prevent further lockdowns. As of August 28, 2023, more than 60% of the French population had received at least one dose of a COVID-19 vaccine, and more than 50% had been fully vaccinated. However, some segments of the population remain reluctant or opposed to getting vaccinated, leading to protests and tensions.
The impact of the COVID-19 pandemic on France’s economy has been severe, as the country experienced two recessions in 2020 and 2021. According to the latest data from INSEE, the national statistics agency, France’s gross domestic product (GDP) grew by 0.5% in the second quarter of 2023, beating forecasts. However, the level of economic activity remained below its pre-crisis level, and some sectors such as tourism, hospitality, and culture continued to suffer.
Category: Business
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