Tuesday, May 15, 2007

French Growth Lowest in EU

As I recently highlighted, Portugal has for a long time had the weakest growth in Europe. Now it has lost that anything but honorable title. Year over year growth in Portugal rose from 1.7% to 2.1% in the first quarter, while France's growth fell from 2.2% to 2.0%. The third infamous laggard, Italy, saw its growth fall from 2.8% to 2.3%, but that is still higher than in France. Given France's more favorable demographics, this is extraordinarily bad for it to be weakest in the EU. Hopefully, Sarkozy will lead France away from the statist policies that have mired its economy and turn around its economy like Germany did, but that is far from certain.

See also Alvaro Vargas Losas interesting analysis of French economic problems.


Anonymous Elizabeth said...

Hi Stefan,

I am fairly concerned for the French decision in this election. Sarkozy is fool's gold. He will help France a bit, but the trade-offs will be less than fair. Trenchant commodification of the population and their time, resources, and skills, will be inversely proportionate to GNH. With allies in Britain and the US, Sarkozy will bring France into the political area it has shunned or denigrated for so long, but I see a bloc of bullies in the near future. Paris is the antithesis of 'time is money and money is time' and introducing that would be a proverbial bucket of ice water that might leave France shivering and frozen, rather than refreshed and awake.

6:14 PM  

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