In France, the Gross Domestic Product (GDP) fell by 0.2% in the first quarter of the year, according to the National Institute of Statistics and Economic Studies (Insee) on Tuesday, which revised down its first estimate.
At the end of April, the Insee had estimated growth of 0%, but the economy has been affected by the decline in household consumption and the fall in purchasing power, which fell 1.9% in the first quarter weighed down by inflation.
In 2021, the GDP grew by 6.8%, but the war in Ukraine and the continuation of the coronavirus in early 2022 have caused the economy to relapse. In 2020, French GDP fell by 7.8%.
In May, inflation in France reached 5.2% in one year, after standing at 4.8% in April. With this, the 5% barrier in inflation is exceeded in the country for the first time since September 1985, according to Insee data.
For the second quarter of the year, the Insee forecasts growth of 0.25% while the Bank of France gives it 0.2%.
Purchasing power became one of the main concerns of citizens in April ahead of the presidential elections.
For this reason, the new government has promised to give it priority with promises such as the establishment of a food voucher or indexing pensions to inflation, among other measures that will not be implemented until the National Assembly is constituted, after the June elections.