Economic Outlook of France
In 2022, The French economy was the world's 7th largest economy and the 3rd largest economy in the European Union preceded by Germany. It is highly developed and diversified. The economy in France is projected to continue to grow at a speed of about 2.7 per cent in 2023.
There is a flexible labour market with lower labour taxes. The improved training opportunities in the country have helped into job creation, primarily for the low-skilled workers. Inflation will become stronger if there is a further reduction in non priority spending.
The GDP growth has been concrete. The economic activity has paced up after a temporary slowdown. At the beginning of 2018, due to high inflation and increase in taxes, there was a reduction in families’ purchasing power which led to an increase in public debt. French economic situation was hit by warm weather and prolonged strikes but the household purchasing power has increased since then, since employment gains have remained solid and the taxes have been decreased. It has also led to the decrease in the unemployment rate and thus reducing dependence on subsidized jobs and short-term contracts.
The Skills shortages for high-skilled jobs is increasing and at the same time the wage growth has gathered speed . The employment rates however remain low and low-skilled workers are facing higher unemployment, lower quality of jobs and almost no training opportunities which in turn limits their income and wellness.