Wednesday, January 7, 2015

GDP: France lost its position as the fifth economic power … – Le Parisien

GDP: France lost its position as the fifth economic power … – Le Parisien

07 Jan 2015, 8:33 |. Update: 07 Jan 2015, 9:16

. On the same subject

So, France was relegated to sixth place … The US, China and Japan remain on the podium.

These figures from the European Commission are only provisional. But according to the BBC, this difference of nearly 4.5% between the two countries should not be questioned during the final publication of the 2014 balance sheets in a few weeks, although the IMF believes that France still has a over its neighbors across the Channel.

Greetings Hollande

How, with nearly 98 billion ahead, the United Kingdom he resumed a lost place since 1973 when, last year, France still had an advantage than a hundred billion?

The UK economy has experienced growth in volume of 3% while French growth should reach 0.4 or painfully 0.5% in 2014. For 2015, the French government still expects a slight growth of 1%, although the fall in the euro against the dollar, the decline in the dollar and low interest rates could lead to a boost for French companies to export, promote consumption and boost real estate. With a growth of 3%, nearly 60 billion more that were created by our neighbors against just 20 billion for France.

Another step ahead for the United Kingdom despite the rate of increase in battery in many sectors of January 1, inflation, ie price increases in France is in neutral 0.4% in 2014 against 1.5% for the British. However, the same threat of deflation in France is an ultra penalizing factor. While consumption remains a pillar of growth, anticipating lower prices considerably slows the economy by stimulating consumer spending deferrals and investment. With inflation of 1.5%, the UK economy has generated nearly 40 billion euros extra.

 Another pillar that allows the UK to take a step ahead. its currency Although it has lost some of its luster in 2014, the pound is worth 1.27 euros. In one year, the increase was 5.4% against the euro. Accordingly, this revaluation has inflate the UK GDP of almost 126 billion euros.

More anecdotally, the United Kingdom takes into account the income of Drugs and prostitution in GDP, unlike France. Now, these two activities generated in 2013 almost 10 billion euros.

The loss of this 5th place was reacted UMP, who believes that France has “huge advantages” but “should correct its weaknesses.” “In addition to lower expenses that erode our competitiveness, we advocate a reform of the labor market, the renewal of the social dialogue, as well, the government is reluctant to take: a true and lasting control of public spending,” says Isabelle Lecallennnec, the spokesman of the party.

VIDEO. France is no longer the 5th largest economy

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