Jean-Luc Tavernier notes that the next government will find “a weak economic situation” but who “Stay positive anyway”around 1% at an annual rate.
Economic actors will be very sensitive to the program of the next government, estimates Monday in an interview with Echos the Director General of INSEE, Jean-Luc Tavernier. He observes that “The business climate collapsed in July given the economic risks linked to the legislative elections”that it recovered by half in August, but (that)“We are still on a knife edge”.
Jean-Luc Tavernier notes that the next government will find “a weak economic situation” but who “Stay positive anyway”around 1% at an annual rate. He notes that it “there is no anomaly in the financial situation” of companies, and that if “investment is low, (this is) not abnormal given the interest rates”.
Energy prices have slowed
While inflation fell below 2% in August for the first time in three years, the director general of the National Institute of Statistics indicates that this scenario was expected, but that it “intervenes a little more quickly than expected”due to the slowdown in energy prices, and particularly fuel prices. “This more than offset a temporary increase in services, probably linked to the increase in the price of accommodation and transport with the Olympic Games.”he explains.
For Jean Luc Tavernier, “There is no reason to expect inflation to pick up at a different pace than the current one”. “It’s a return to the world before, but that doesn’t mean that prices are returning to the level they were before. We’re keeping track of past price increases.”he warns.
Asked about the risk of recession, Jean-Luc Tavernier believes that “It’s hard to say” : “but it would be angelic to think that the economic climate and the expectations of businesses are indifferent to economic policy, whether it concerns the future of past reforms, the evolution of the minimum wage or budgetary consolidation, which will have to be continued in one way or another”. “Especially since this national political uncertainty is compounded by the uncertainty about the recovery in Germany, particularly in consumption, which is weighing on the French economy.”he still believes.
