In 2021, France will have “more growth” than the European average

“For this year, we will have, in France, more growth and a little less inflation than the European average”, noted the governor of the Bank of France on Friday.

The horizon is emerging in the euro zone. With an average growth recorded at 4.4% this year and 4.7% next year, the outlook is promising, the Governor of the Banque de France said this morning. Asked about Radio Classique, François Villeroy de Galhau said that France would do better than the majority of its European neighbors: “for this year, in France, we will have more growth and a little less inflation than the European average“, Commented the governor, whose institution will publish”Monday evening»His forecasts for France in 2021.

SEE ALSO – Euro zone: the European Commission significantly raises its growth forecasts for 2021 and 2022

At the National Assembly this Friday morning, the Minister of the Economy, Bruno Le Maire, also made an optimistic speech on the prospects for France. “Growth is back, investment has been growing uninterrupted for three quarters, consumption has rebounded sharply since the reopening of shops and restaurants […] As for the confidence of entrepreneurs, it is at its highest since the start of the crisis“, Enumerated the boss of Bercy in front of the deputies. The ministry expects growth of 5% this year for France.

The ECB’s status quo is supported by the governor, for whom “we do not change a monetary policy that works“. The situation is still too fragile for central bank support to fade, he pleaded. “We are far from full potential, so we must continue an accommodating monetary policy […] for all economic players», Explained François Villeroy de Galhau. The medium-term objective of the Banque de France and the ECB is inflation at 2%. In the United States, the rate rather reaches 5%, but American activity is picking up much faster than in Europe, qualified the governor.

The Banque de France is also monitoring the rise in valuations on the financial markets, in order to avoid any financial bubble. A financial stability review will be published for France “at the end of June“, But the institution does not see”no global financial bubble” for the time being.

François Villeroy de Galhau will also make a “progress report on the application of the recommendation we decided on last December on mortgage loans», At the next meeting of the high council of financial stability, next week – June 15, according to our information. The recommendation “is implemented“, At this hour, and it will be transformed into order”in the summer“. “safeguards“Must be introduced to regulate mortgage lending, in order to prevent loans from being”too long»And that the repayment charge is not too high, a prelude to a risk of household debt distress.


SEE ALSO – Covid-19: “Investment and consumption are restarting”, welcomes Bruno Le Maire

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