France experiences significant rise in poverty rates between 2015, 2023
Date
9/29/2024 3:09:18 AM
(MENAFN) A report published by a French newspaper revealed that France is the only European country to experience a significant rise in poverty rates between 2015 and 2023. According to the French Observatory of Inequality, poverty levels in the country have surged at a record pace in recent years, with the number of poor people ranging between 5 and 9 million. The percentage of the population living in poverty has also increased since the mid-2000s.
French economist Pierre-André Bouygues from the University of Toulouse commented on the issue, noting that the most vulnerable groups in society have grown in size, highlighting the need for policies aimed at supporting this segment of the population. This rise in poverty has sparked political debates in France regarding the issue of purchasing power and its impact on living conditions.
The National Institute of Statistics and Economic Studies defines purchasing power as the amount of goods and services that income can buy. When comparing countries, the Purchasing Power Index is used to eliminate price differences, allowing for a clearer understanding of how far income can go. While French purchasing power is lower than that of Germans, it remains higher than that of Spaniards and Italians. In 2022, the average purchasing power of a French citizen was 24,900 points, 24.5 percent higher than in Spain and 7.8 percent higher than in Italy, though still 10 percent below Germany.
Pierre-André Bouygues also pointed out that between 2015 and 2022, French purchasing power increased by 20 percent, a growth rate similar to Germany's during the COVID-19 crisis and President Macron's first term. Looking ahead, the Bank of France projects that purchasing power will increase by 0.6 percent in 2023, 0.7 percent in 2024, and 0.5 percent in 2025. However, the economist emphasized that the poverty rate, calculated as the percentage of people whose income is below 60 percent of the national average (about 1,236 euros per month), remains a more complex issue in understanding living standards in France.
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