France: an overview of economic, social and political risks

The outlook for the French economy can be summed up in one simple question: will households continue to save massively more than normal? Before 2020, they were saving 15% of their gross disposable income. Now it's up to around 18%. The inflation shock and its repercussions on the financial sphere (rising interest rates, credit crunch) have changed spending behaviour. With inflation normalising, the savings rate should normally fall, supporting consumption. Caution is still called...