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Once labeled "the sick man of Europe," France has made a remarkable turnaround. While Northern European countries like Germany and Sweden grapple with economic challenges, France is on an upswing. In the second quarter of 2023, its GDP showed modest growth of 0.5 percent, thanks to recent structural reforms and the thriving service sector, especially in tourism.
Citizens of this country have mixed emotions and opinions regarding the economic situation and progress in this country. While some believe that France has made a lot of progress economically, there are also those who believe that such data are not accurate at all.
However, this economic success story is offset by a significant rise in government debt, which now surpasses 3,000 billion euros, equating to 112.5 percent of GDP. This marks a stark increase from the less than 100 percent of GDP reported in 2019.
Additionally, France's budget deficit has surged to five percent, well beyond the Eurozone's prescribed 3 percent limit. All this causes concern among the leaders of this country, as well as citizens who believe that the debt will grow in the future, and citizens will have to face even greater crises.
Germany
In contrast, Germany faces challenges as its export-dependent economy grapples with stagnant international trade, exacerbated by a slowdown in the Chinese economy and trade disputes with the US and China. The transition to electric cars, driven by climate change initiatives, is also testing Germany's traditionally strong automotive industry, with the majority of electric car batteries coming from China.
France's resurgence is noteworthy, but its economic stability is overshadowed by the mounting government debt and budget deficit, raising concerns for the future. It is certain that the French government will do its best in the coming period to ensure a stable economic situation within the country.
France, just like other countries in the world, has a huge problem due to the war in Ukraine, COVID, and now the war in Palestine could cause consequences. All this acts as a domino effect and creates negative consequences for the state.