The Banque de France is playing the optimism card. According to its governor François Villeroy de Galhau, France’s growth should be above 5% in 2021.
A clearing up as France has plunged back into confinement since March 31. François Villeroy de Galhau, the governor of the Banque de France, told the microphone of France Culture that the French economy will show growth of more than 5% over the whole of 2021, provided that ” current additional restrictions do not last beyond May “. This indeed remains to be seen. But the first quarter should produce a slightly positive result, he believes, with an economy that has run at 96% of its capacity before the health crisis in March, a point higher than in February.
Better than government forecasts
This rebound of over 5% is fairly consistent with recent IMF forecasts which gave France 5.8% in 2021. Anyway, the country should do better than the euro area average, forecast at 4. , 4%, which confirms François Villeroy de Galhau. It should be remembered that the GDP was hit hard in 2020 with a spectacular contraction of 8.2%. According to the governor of the monetary institution, the country’s economic activity will return to its pre-pandemic level in mid-2022.
165 billion euros in savings
If the Banque de France wants to be optimistic, it is because most companies have learned to “live” with the health crisis: teleworking, take-out … Of course, there are still several sectors in great difficulty: retail trade, catering. , culture or tourism. François Villeroy de Galhau also detailed the level of savings of the French, which will reach around 165 billion euros spread between 2020 and 2021. ” In total, that makes a kind of growth reserve of around 6 or 7% of GDP He adds. The government would like to push the French to invest this woolen stocking in the real economy.