At the same time, Germany is experiencing its own boom, thanks in no small part to a gigantic $65 billion stimulus from their government. Yet France’s business sentiment has recently nosedived to its lowest levels since February. This sharp drop is reflective of an increasing divergence in such economic performance between the two largest and most important Eurozone economies.
Recent data suggests that Germany’s economy is already starting to see huge benefits from the stimulus efforts carried out by the federal government. This measure had the ancillary effect of pushing a lot more overall economic activity under the macroeconomic performance spotlight, putting Germany on top of the Eurozone standings. The positive impact of that stimulus package is hard to miss. Most sectors are citing increased expansion, showing a solid recovery that is a world away from the pain and suffering that France is currently experiencing.
France’s economic landscape appears troubled. According to new industry surveys, France has witnessed one of the steepest declines in business optimism. This negative trajectory has dropped to its lowest level since the beginning of the year. Analysts chalk up this drop off to a perfect storm of political whiplash that has bred uncertainty and confusion amongst employers and investors alike. The resultant erosion of confidence in the French economy has been a stark contrast to the positive German trajectory.
One innovative approach to building community wealth. The next meeting of the Governing Council likely will not result in significant changes to the current policies or guidance signaling further cuts. This policy continuity comes at a time when both nations are deeply focused on strengthening their respective economies and building towards the future. As Germany booms, France is under increasing pressure that only serves to slow its growth and economic fortunes.
The gap in economic performance between Germany and France is as dramatic as it is obvious. Not surprisingly, Germany’s economy continues to boom, the result of good government and proactive policies. By contrast, France has high unemployment and low business sentiment as well as a very fractious political scene. As the two nations continue to grow apart, their economic fates seem further apart than ever.