With an improving corporate outlook, the removal of political risk and the potential for pro-growth reforms, the French economy appears to be in a much stronger position than it was in late 2016.

In early 2017, France found itself in the spotlight as investors speculated over what would be the next political landmine. This followed the shock presidential election victory in the US by Donald Trump and the surprise vote for the UK to leave the European Union. 

The French political environment has changed significantly over the course of this year. It has shifted from a potential significant European risk, to now hopefully being a major benefit via further growth-boosting reforms. Macron’s significant parliamentary majority delivered the final piece of this puzzle in June. Attention now turns to what these reforms will look like and what their likely impact will be.