Welcome back dear loyal readers of Invest In The Stock, we are always very satisfied with the affection you show us on a daily basis. In today’s article we will talk about finance, specifically we will deal with France’s GDP 2023. We will go together to make an analysis of forecasts and possible inflation.
What is GDP and how is it calculated?
Let’s first start by understanding what gross domestic product (GDP) is, it is the value of a country’s wealth.
That is, it measures the value of final goods and services produced in a year or a given period of time.
What defines GDP?
In theory, GDP, or Gross Domestic Product, can be defined using the three terms that name it:
- Product, this refers to the value (which demonstrates wealth) of the final goods and also services produced in the context of the economic system
- Internally, the productive economic system refers to a given country, for example we will have GDP Italy, GDP France 2023 and so on
- Gross, that is, the inclusive value of the expenses that serve to replenish the productive capital which, year after year, wears out, reducing its initial value
How is GDP calculated?
Now let’s see how France’s GDP is calculated today.
First of all it must be specified that the internal product is made up of different components.
In addition to this, it is possible to calculate the GDP through different methodologies, such as:
- Expense method
- Value added method
- Income method
And by adopting any of these systems, the result will always be the same, even if the calculated components are different.
What is the French economy based on?
Now let’s see instead, what are the foundations of the French economy.
It is mainly characterized by the production of services.
In fact, the tertiary sector employs around seventy-five percent of the working population.
Especially since the so-called primary sector, i.e. agriculture, fishing and livestock, barely touches three per cent of the total employed.
The secondary sector, therefore, the industrial market, covers about twenty percent of the total; and the main segments are meat, milk and cereal industries, sweets and alcoholic beverages are also growing.
Among other things, this last sector is one of the most prosperous in the entire transalpine country.
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Analysis of the French GDP trend
France’s GDP per capita performance suffered a setback in the last quarter.
As the French GDP forecasts by market analysts had amply demonstrated.
In fact, household expenditures for consumption marked a minimal change compared to the previous quarter, and domestic demand seemed to be growing well, contributing positively to France’s GDP today.
On the other hand, a negative note is foreign trade, which has made a relatively negative contribution.
How is the current situation of the French economy?
The economy of the transalpine country is experiencing a difficult period, especially due to high inflation.
A situation that has not been seen for about fifty years, and even the Banque de France, through specific studies conducted, has predicted an inflation rate of six percent for 2022.
For next season, however, the French GDP forecasts indicate a fairly stable consumer price index, also known as IPCA, between four and seven per cent.
This means that the peak of inflation has probably been reached.
What is France GDP Growth?
Thanks to the increase in prices and consequently to the drastic drop in consumption, France’s GDP growth is experiencing a moment of stagnation.
Indeed, according to the latest analysis by the Insee-Institut National de la Statistique et Des Études Économiques, France’s GDP per capita has slowed significantly:
- Standing at +0.2%, after an increase of 0.5% in recent months
- According to market experts, the rapidly increasing inflation that is affecting several states sees the significant increase in prices as a direct consequence.
This means that on an annual basis, there will be a decline in consumption by people.
This financial phenomenon in France has not occurred since 1985, and according to many experts it will continue again in the next 2023.
Given that the prices of goods produced for the domestic market have increased, while those relating to the foreign market have decreased after a long time.
What are the France 2023 GDP Forecasts?
As we have seen previously, France’s per capita GDP, as well as the whole European area, is experiencing a strong period of recession, of contraction in consumption, mainly due to inflation.
Unfortunately, in order to try to mitigate the price increase, the ECB, like the Fed in the United States, has embraced the policy of raising interest rates.
The central governments of the states and the companies of the various countries of the European Union, including France, have tried to give relief to taxpayers, through the inclusion of a minimum wage and tax exemption.
It is useful to point out that a sector study also reveals a cautious attitude on the part of European entrepreneurs, who are avoiding using drastic measures, monitoring the situation, in the hope that it will improve considerably.
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International Monetary Fund: how it sees the European situation
Retail prices in the 19 countries that are part of the European Union have reached their highest level since the creation of the single currency (Euro), now more than 20 years ago.
But even outside the European borders the situation is not the best, for example:
- The International Monetary Fund has determined that Great Britain is the country among the G7 where inflation will remain high for some time
As far as our territory is concerned, the IMF Monetary Fund has cut its estimate of Italian GDP for 2023 by 0.9 points, and expects a widespread technical recession.
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Well dear friends of Invest in The Stock, thanks to our article you have much more information on GDP France 2023, you also understood how inflation hits the economy hard not only in the transalpine country but in all countries, as this is the European situation at present, affected by the effects of the Ukraine Russia conflict.
Invest In The Stock, The Editorial Staff
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