The economic situation of the French is improving. According to the latest INSEE economic report, published on December 17 and relayed by our colleagues at BFM Business the real purchasing power of households would have increased by 2.1% between 2023 and 2024. A figure which takes into account both the increase in real income, which reaches around 4%, and inflation estimated at 2%. . After falling sharply over the past year and a half, the latter should approach the 1% mark in the coming months, due to the fall in electricity prices. Conversely, salaries and retirement pensions have increased significantly since they have been indexed to the inflation of the previous year.
Do these gains in purchasing power benefit the French economy? INSEE assures us that no. And for good reason: instead of being consumed or invested, they were above all spared. In 2024, the French put around 18% of their income aside, compared to 16% in 2022 and 14% on average between 2014 and 2019. A widespread trend which has made it possible to inflate savings accounts. At the middle of the year, 660 billion euros were placed in these banking products, including 76 billion euros in popular savings accounts alone (compared to 38.4 billion euros in 2021).
Towards a revival of consumption
This strong trend toward saving surprised many economists. Usually, this reflex occurs in the event of a recession, a rapid increase in unemployment or significant inflation. “No one expected that the savings rate, which was already very high, would continue to increase,” reacted Dorian Roucher, head of the economic department of INSEE. According to him, this can be explained by the fact that “households were delayed in realizing that inflation had fallen.” However, if it only started a few months ago, this perception should in fine lead to a revival of consumption.
This would be good news for France's economic outlook, as household investment has been slowing down for three years. INSEE also specifies that the volume of investment by French households fell by 12% between 2019 and 2024. An observation which results in particular from the rise in interest rates and the political instability which has reigned for some time. time in France.
