The additional savings due to the consumption deficit induced by the coronavirus epidemic will reach 165 billion euros for the years 2020 and 2021, estimated the governor of the Bank of France, François Villeroy de Galhau, on Tuesday.
“Covid savings, we estimate it at 110 billion for 2020 and we expect that this year will add roughly half, 55 billion. In total, that makes a kind of growth reserve of the order of 6 or 7% of the GDP ”, declared the governor of the central bank on France Culture.
Growth greater than 5% in 2021
“The absolutely key factor for this savings to turn into expenditure and more direct support for activity from next year is confidence,” he added. François Villeroy de Galhau specified that this confidence should be both health and economic, “with a certain number of reassurances, of clarifications that are given to the French to encourage them to use their savings”. Following the latest economic report published on Monday by the Banque de France, its governor also confirmed on Tuesday the growth forecast for the French economy for 2021.
“If the current additional restrictions do not last beyond the month of May, we should have for the French economy a growth of more than 5% over the whole of 2021”, he declared. In mid-March, the Banque de France raised its growth forecast from 5% to 5.5%. “This means that the French economy will grow significantly more than the European average this year” which is “at 4%”, welcomed the governor, who foresees that the French economy, which has experienced a historic recession of 8 , 2% in 2020, may return to its pre-crisis level by mid-2022.