29 May 2019
Official data revealed that the French government’s efforts to enhance purchasing power led to an increase in incomes and savings in French households.
As Reuters reports, the INSEE statistics agency showed the French economy kept to its steady growth rate, recording 0.3% growth in the three months to end of March.
Back in December, French President Emmanuel Macron’s government had introduced measures to strengthen the incomes of the poorest workers and pensioners, totalling to over 10 billion euros. This initiative led to a 0.9% rise in households’ disposable income.
Consumer spending, which is usually a key driver, instead expanded by a mere 0.4% in the first quarter. The report indicated that households are choosing to save their money instead of spending extra cash, with savings increasing from 14.9% at the end of 2018 to 15.3%.
Macron’s set of measures formed part of his response to the famed gilets jaunes protestors.
The French president implemented a number of other concessions, including last month’s reveal of plans to decrease income tax by an additional 5 billion euros.