The latest quarterly economic outlook from the country’s central bank, which has its headquarters in Paris, expects that growth will slow from 1.3% this year to 1.1% next year; only last summer it predicted that growth would continue at 1.3%.
With an eye on the more distant future, Banque de France, predicts that the economy will rally in 2021 and 2022, with growth of 1.3% predicted for both years. However, this is lower than the 1.4% which it originally predicted for 2021.
The predictions for next year chime with those of the French Finance Minister Bruno Le Maire in so far as they have been downgraded; however they are less optimistic than his growth forecast, which he recently downgraded from 1.4% to 1.3%.
More strikes, more economic pain?
President Emmanuel Macron is continuing to push ahead with an ambitious economic agenda despite considerable hostility from “yellow vests”.
Pension reform has been the protesters’ latest target, with union leaders calling for an open-ended strike and protesters taking to the streets in a show of force.
Yet Macron remains steadfast. “We are rebuilding a universal pension system, much fairer and accountable,” he said in an AP report*.
“I have an ambitious project for the country”, he said. “And I won’t give up. Because I deeply believe that France is a great country which can face the challenges of the 21st century.”*
Financial advice for expats in France
As an expat in France you will have unique cross-border circumstances that are likely to affect your pension planning. For example, you may wish to convert your UK pension to a QROPS or SIPP.
Whether you are looking into this or are considering the possibility of an assurance-vie, we can offer specialist and personalised advice to help you make a decision that is in your best interests.
We can help you make sense of all your wealth management options so that you can have confidence that your money will continue to work for you, both now and in the future, when you reach retirement.
Disclaimer: The provision of information in this communication is not based on your individual circumstances and does not constitute investment advice. Blacktower makes no recommendation as to the suitability of any of the products or transactions mentioned.
* https://apnews.com/f3fa07de7ab78c9f507bb5ac48db73e6 Accessed 18-12-19
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Readers may remember the pension freedoms announced by George Osborne in 2014. These became effective on April the 6th this year. The fanfare accompanying the announcement and indeed subsequently is often set against the backdrop of pensioners sat in Daimlers or on Yachts having drawn all their money out and lavished it on some frivolous purchase.
Much has happened since I last put pen to paper in the immediate aftermath of the referendum result and I thought it sensible to comment on some of the issues which are emerging from the ‘swirling fog’ that we experiencing. July 24th 2016, reminded me of September 12th 2001 in New York, with people walking around in shock, confused at the attack on the political and economic system. To be angry at the shock of the unexpected result and how that might affect everyone’s life is a natural and rational response, however much it might seem otherwise. Last week I wrote that the result was not a disaster and the financial system was capable of absorbing this shock, in short, my view has not changed.