BAROMETER. Political chaos in France has plunged the economy into a slump and raised fears of a collapse. For now, road transport prices are holding up, but anger is brewing.
In recent days, the hypothesis of a "rising productivity gap" has been a recurring theme in every conversation. This notion, very present in the 2024 Draghi report on European competitiveness, reappeared in a study by the OFCE (French Observatory of Economic Trends. According to this study, the decline of the European economy, and particularly France’s, compared to that of the United States, comes from productivity that has been in decline for a quarter of a century, created by the lack of business investment.
In France, the current political situation is not helping matters. The resignation of the new Prime Minister Sébastien Lecornu on October 6, a few hours after the announcement of his government and only a few weeks after taking office to replace François Bayrou, gives a very chaotic view of public affairs in our country. The decision of the President of the Republic to reappoint Sébastien Lecornu as Prime Minister on October 10 added even more to the general confusion.
Damaged confidence, despite a resilient economy
In its latest economic projections, published in September, the Banque de France has slightly revised its forecasts for 2025 upwards, now counting on a 0.7% increase in GDP, thanks to...
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