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Why purchasing power should start to rise again in 2024

2024-02-15T17:30:33.128Z

Highlights: Since Covid, the disconnect appears more and more marked between these two indicators. During the Covid period, household purchasing power increased by 1.8% per consumption unit (CU) (1) Since the inflationary crisis, it has stabilized before starting to rise again this year. OFCE economists, who are publishing a note on the subject this Thursday, are counting on a gain of 1%, or 380 euros per consumption units in 2024. Thus at the end of this year, purchasing power per CU would be 2.6 points higher than its level at the. end of 2019.


Traditionally, the evolution of purchasing power is correlated with that of gross domestic product (GDP). But since Covid, the disconnect appears more and more marked between these two indicators.


Economic shocks follow one another without the overall lifestyle of the French people suffering.

During the Covid period, between 2019 and 2021, household purchasing power increased by 1.8% per consumption unit (CU) (1), or 350 euros per year on average.

Since the inflationary crisis, it has stabilized before starting to rise again this year.

OFCE economists, who are publishing a note on the subject this Thursday, are counting on a gain of 1%, or 380 euros per consumption unit in 2024. Traditionally, the evolution of purchasing power is correlated to that of gross domestic product (GDP).

It is the wealth created that allows everyone to improve their standard of living, but since Covid, the disconnect appears more and more marked between these two indicators.

Thus at the end of this year, purchasing power per CU would be 2.6 points higher than its level at the end of 2019, while GDP would barely exceed the performance recorded at the time.

No mystery there...

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Source: lefigaro

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