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French growth barely 1% until 2022

© Press TV

Ramin Mazaheri
Press TV, Paris

The bank of France has revised earlier projections downwards to forecast continued near-recession levels of growth until the end of President Emmanuel Macron’s term in 2022. The second-largest economy in the Eurozone is predicted to achieve annual growth rates over the next 3 years of just 1.3 or 1.4%. 

The report did not take into account the new certainty of sustained higher oil prices, nor could it predict the effect of a no-deal Brexit, or how household spending will be affected by likely another austerity budget for 2020.

The report actually based its predictions on lower oil costs. Such low growth rates have long been considered to be an indication of economic policy failure.

One of Macron’s key campaign promises was to bring down the unemployment rate to 7%. However, economists say that job creation doesn’t begin until a growth rate of 1.5%, ensuring that millions will remain part of the long-term unemployed. 

Despite the continued low economic growth, France’s corporations continue to post record stock profits. Also soaring in France? Rates of economic inequality, and anti-government movements such as the Yellow Vests. 

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