Property to benefit as French economy outshines Eurozone
Inflation in France during 2022 was lower when compared to other countries which has been an advantage for consumer purchasing power, and has propped up growth in 2022. This will probably persist in 2023 according to Riccardo Marcelli Fabiani, Economist, Oxford Economics.
“We will see the French economy being more resilient and growing slightly better than the Eurozone average over the next year,” he said.
At the same time high inflation means there will be impact from monetary policy and there s growing uncertainty “from many different sources”.
Although France should be more resilient, 2023 could be more challenging with more subdued growth.
“But I’m more optimistic about 2024 because the industrial sector has already adapted to higher energy prices,” Fabiani adds. He said there is also an improving industrial outlook for 2024.
Higher interest rates will put a strain on the real estate sector in general but inflation is poised to to come down gradually, and the ECB will be able to ease monetary policy which will improve the sector’s prospects.
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