France and Emmanuel Macron Finally Have an Economy to Crow About - Bloomberg

France and Emmanuel Macron Finally Have an Economy to Crow About - Bloomberg



...France, the second-largest economy in the monetary union, is faring much better than most experts would have assumed. Its economic model – less reliant on exports than Germany – is proving more resilient to the dangers of a U.S.-inspired trade war. At the same time, the government’s decision to embark on some fiscal stimulus at the end of last year to stave off the revolt from the “yellow vests” has proven to be lucky. It provided support just as the European economy was about to slow.



...France has a very slight current account deficit – 0.6% of GDP – while Germany has a whopping 7.3% surplus, and Italy 2.5%.



...in France. The labor market has improved, with unemployment falling to 8.6% in July, the lowest in more than 10 years. Wages are accelerating, putting more money into people’s pockets. Real household income per capita rose at an average rate of nearly 1% in the two quarters around the turn of last year. In Germany it was 0.65% and just above zero in Italy.