|France Holds Title Of World’s Most Visited Nation|
On Thursday the French government rolled out a new stimulus plan The fact France is again forced to stimulate its economy should be viewed as bad news. The move reflects the reality that all is not well and things are getting worse. France is facing one of Europe’s worst recessions and its deepest since World War Two. France is looking at posting an 11% drop in GDP 2020. This follows a 13.8% second-quarter contraction that coincided with the covid-19 lock-down. This is seen as an attempt to bolster French President Emmanuel Macron’s re-election prospects. Macron is not loved by many of the French people and the “Yellow Vest” protesters that have marched against his policies are proof of this. If France moves back to the right support for a stronger Euro-zone government body will take a big hit.
The stimulus scheme designed to lift the country out of the recent slump aggravated by covid-19 will cost 100 billion euros or about 120 billion dollars. As with most government stimulus plans, it is aimed at reducing unemployment which French officials concede is slated to top 10% next year. The amount of this particular package is equal to roughly 4.5% of the GDP and brings this year’s total stimulus to around 10% of France’s GDP. The French government is betting that by supporting jobs they will give consumers the confidence to start spending the 100 billion euros they stashed away during the lock-down.
Stash Learn shows France as being the second-largest economy in Europe, and the sixth-largest in the world. As the world’s most visited nation, France’s tourism industry is a major component of the country’s economy. This means that France’s economy being in the muck is a big deal.