French household buying power to rise by €850 in 2019

The average French household will see its buying power increase by €850 over the course of 2019, according to the OFCE

The buying power of the average French household is to rise by €850 over the course of this year, a new economic study has found.

French households have seen their buying power rise considerably since 2007, the new report said, in large part due to the mobilisation of the gilets jaunes movement.

This began in November 2018 as a protest against rising fuel prices, and has continued every Saturday since, as a wider movement against the government and a perceived drop in buying power.

The new study, by economic research agency l'Observatoire Français des Conjonctures Économiques (OFCE), found that the changes put in place by the government in response to the gilets jaunes' demands have contributed to a rise in buying power.

In 2019, the report said, this will rise by an average of €850 per household.

Half of this amount is directly linked to government changes, the study showed. The rest is due to a low level of inflation, and a relatively new trend among French households to save more money.

However, money spent by French households in France does not necessary directly contribute to a growth in the economy. For each €100 spent nationally, at least one third represents investment in imported products from elsewhere, according to consumer magazine Les Radins.

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