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France’s GDP expanded by 7 percent last year, topping pre-COVID output as consumer spending drove the economy’s best annual growth in 52 years.
In December, the economy grew 0.7 percent above November’s level.
“There are still some sectors having trouble, like tourism and hotels, but most are recovering very strongly and that’s creating jobs,” finance minister Bruno Le Maire said in a statement announcing the results.
“The French economy has rebounded spectacularly and that’s erased the economic crisis,” he added.
An increase in tourism gave Spain’s economy a 2-percent lift in 2021’s fourth quarter, helping it grow 5 percent through 2021, its best record since 2000, although still 4 percent less than its pre-COVID GDP.
On the downside, Europe’s largest economy, Germany, saw its manufacturing-dependent economy shrank 0.7 percent over the quarter, giving it a 2.8-percent annual growth in 2021.
TREND FORECAST: If the ECB continues to keep interest rates zero despite inflation spiking, and nations dramatically withdraw from fighting the COVID War—which is a trend as evidenced by the easing of draconian mandates in Spain, U.K., Denmark, Czech Republic, etc.—Europe’s economy will grow during the tourist season.
However, if nations impose strict travel mandates such as forced vaccinations, testing and quarantine, the recovery will be limited.