After an 8% collapse due to Covid-19 last year, the French GDP could grow by 6.7% for the whole of 2021. Next year, the recovery should be confirmed. However, inflation could spoil the party, particularly affecting purchasing power.
The National Institute of Statistics and Economic Studies (Insee), in its latest economic report published this Wednesday, estimates that the automatic increase in the minimum wage will be “around 0.9%” on January 1st.
French growth could be 0.4% in the first quarter and 0.5% in the second quarter of next year, Insee estimates, following a GDP increase of 0.5% in the last quarter of 2021. This ongoing fourth quarter should allow the French economic activity to fully erase the scars of the crisis, Insee specifies in its report, and to be “0.4% above its pre-pandemic level.”
The beginning of 2022 should at the same time be marked by still strong inflation, “overall around 2.7%” year-on-year, continuing the trend seen for months amid a significant rise in energy prices and tensions in global supply chains.
