ECB’s Villeroy: Despite PMI Data, French Economy Showing ‘More Resilience’

22 November 2024

ECB’s Villeroy: Despite PMI Data, French Economy Showing ‘More Resilience’
François Villeroy de Galhau, governor of the Banque de France, at the European Central Bank Forum on Central Banking in Sintra on Jule 2, 2024. Photo by the ECB under CC BY-NC-ND 2.0.

By Marta Vilar – FRANKFURT (Econostream) – European Central Bank Governing Council member François Villeroy said on Friday that economic activity in France was stronger than recent PMI data might suggest.

In an on-stage conversation at the European Banking Congress in Frankfurt, Villeroy, who heads the Banque de France, said that indicators like the central bank’s business survey suggested French economic growth was showing ‘more resilience’ despite the latest weak PMIs for the country.

‘We have a trend [for] quarterly growth 0.2% each quarter, 1.1% according to Banque de France this year, and it shouldn’t be very far from this next year’, he said.

Donald Trump’s new presidency in the US would be a challenge not just for Europe but for the entire world, he said.

‘I think the risks of inflation are probably higher in the US than in Europe’, he said, ‘and the risks to growth are probably higher outside the US than in the US.’

Europe should use this situation as an opportunity for reform and monetary policy should not be the only policy relied on, he said.

 

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