In the second quarter, the French economy is expected to show a slight improvement, following a 0.2% growth in the first quarter. This growth is driven by strong performances in the retail, business services, and technology sectors. Despite momentum in the services sector and surprising strength in industrial and construction areas in April, there is caution in the forecast as downturns are expected in these sectors and service sector growth may level off in May due to public holidays.
The implementation of a new base year for assessing national accounts adds complexity to economic predictions, making it challenging for future projections. It is important for investors and policymakers to be aware of the potential for uncertainty in France’s economic outlook due to the impact of public holidays and changes in reporting standards.
Navigating through these changes effectively is crucial for those who are responsible for making important economic decisions. INSEE introducing a new base for calculating national economic accounts may make interpreting France’s economic trajectory more difficult. As such, it is imperative that policymakers and investors remain vigilant and adaptable when making decisions based on economic data.
