Macron’s first year bodes well for France

One year into President Emmanuel Macron’s term, the French economy is performing well. Annual GDP growth is healthy and the labour market is recovering steadily. But this owes little to Macron’s efforts so far, reflecting instead the impact of previous reforms and the favourable global backdrop. However, the reforms that he has implemented or announced bode well for the future of the French economy. He has made the labour market more flexible and looks likely to follow through on his commitments to boost households’ disposable income and reduce businesses’ costs. Further tough reforms lie ahead but the progress made so far provides cause for optimism.