Growth and Economic Outlook
Following a contraction in 2023, forecasts from INSEE and the Banque de France suggest that economic activity in France will stabilise at a moderate pace in 2024. Despite a downward revision by the European Commission due to persistent inflation, the French government is optimistic, anticipating a modest recovery of +1.3% in 2025, driven mainly by household consumption.
Inflation and Purchasing Power: Contrasting Trends
Initiated in the summer of 2023, the fall in inflation should continue in 2024 and 2025, maintained at around 2%. Initially affecting the services and energy sectors, the slowdown in prices is gradually spreading to manufactured goods and food. At the same time, food prices, which are closely linked to raw materials, are expected to stabilise in 2024 and fall significantly in 2025. Although household consumption will be 150 basis points lower than in 2022, it should reach around +0.6% in 2023. The slightly upward trajectory of purchasing power (between +0.7% and +1%) is supported by the rise in real wages and the fall in inflation. However, low-wage earners below the index-linked minimum wage face challenges in offsetting inflation through savings. These contrasting dynamics are shaping the economic landscape in 2024, underlining the need for a strong economic recovery.
Discover the Outlook 2024 in Commercial Real Estate
In this pivotal year, dive deep into the "Outlook France 2024" reports of the Office, Retail and Logistics Real estate markets for an informed view of the trends ahead. Navigate through the outlooks to grasp emerging opportunities and understand the key dynamics that will shape these sectors in 2024-2025. Economic challenges become opportunities, and these detailed insights offer the keys to informed decision-making. Don't miss the chance to stay ahead of the trends and shape your strategic vision in these dynamic markets.
