In 2019, The French economy was the world's 7th largest economy and the 2nd 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 1½ percent in 2020.
There is a flexible labor market with lower labor taxes. The improved training opportunities in the country have helped to job creation, primarily for the low-skilled workers. Inflation will become stronger if there is a further reduction in non-priority spending.
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 an 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 a decrease in the unemployment rate and thus reducing dependence on subsidized jobs and short-term contracts. The skills shortages for high-skilled jobs are 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.