As early as last March, economists from Insee had predicted that 2015 would be the year of increased purchasing power. They were not mistaken. It would be the first time in 8 years, since 2007, that it would reach such an increase!
According to Insee, the purchasing power of the French will increase by 1.7% this year (compared to a modest +0.5% last year). It would be the first time in 8 years, since 2007, that it would reach such an increase!
Two factors played a role: a decrease in tax pressure, especially on the lowest wages, and the dramatic drop in oil prices, which have fallen to their lowest in six years.
It was also estimated that “with oil at $60 a barrel for an entire year, 2015, it means 20 billion euros less in expenditure for France compared to the previous year.
Today it is at $46 a barrel… which allows for optimistic forecasts for 2016.
And the positive trend should continue next year. According to the French Economic Observatory (OFCE), several indicators should return to positive territory in 2016.
