The French Economy 2018 Edition

As it does every year, The French Economy - Accounts and Reports presents a summary of the essential movements having affected the French and global economies of the past year.

To do so, the paper relies on the French National Accounts, based on 2014, published by INSEE [French office of national statistics] at the end of May 2018. More information is available only in French on the French pages of the website.

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Paru le :Paru le04/10/2018
Ronan Mahieu
L'économie française - Comptes et dossiers- October 2018
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The accounts of companies, households and public administrations ten years after the financial crisis

Ronan Mahieu

The subprime crisis really began in 2007, before turning into global financial turmoil during 2008 and triggering recession on a scale unprecedented since the end of the Second World War. These events had major repercussions on the dynamic of incomes for different categories: businesses, households and, of course, public administrations. Between 2007 and 2017, household gross disposable income certainly continued to grow quite regularly but much less quickly than before the crisis: it grew nearly 17% in nominal terms (instead of 51% over the previous decade) and 8% in real terms (instead of 30% over the previous decade). Calculated by unit of consumption, purchasing power practically didn't rise (+0.7%) in ten years. The shock was more temporary for non-financial companies. Their gross savings stagnated between 2007 and 2010, before returning to growth comparable to pre-crisis levels: they stabilised in 2017 at a little more than €60 bn above their pre-crisis levels, an increase of 30% compared to 2007. This resilience contrasts with the situation of public administrations: their gross savings fell by €76 bn between 2007 and 2009, and were even negative from 2009 to 2011. It was only in 2017 that they returned to pre-crisis levels. The budgetary policy actually led to postponing rebalancing public finances, firstly by avoiding a drop in household incomes, then by accelerating the improvement in company accounts.

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Paru le :07/01/2019