by Julia Gro, uro on Sunday
The economy picked up by seven percent last year. In contrast to Germany, gross domestic product even rose in the fourth quarter as the number of infections increased.
Relatively early on, France relied on the Corona pass as a prerequisite for access to gastronomy, culture and long-distance transport and thus achieved a high vaccination rate on the one hand and avoided stricter restrictions on the other. As a result, consumption increased significantly and almost reached the pre-crisis level, although according to the Banque de France, the French still had an excess of 187 billion euros in savings towards the end of 2021. Trade and gastronomy are likely to catch up further in 2022 when tourists return. In addition, production should revive strongly over the course of the year, both in the automotive industry and in aircraft construction, if the supply bottlenecks resolve as expected. The prospects for French companies are therefore still good.
The leading French index CAC 40, which this Xtrackers ETF tracks, has risen by an impressive 30 percent over the past twelve months. The economy is booming, and rising consumption in particular has given the French blue chips a tailwind. Almost a third of the index is made up of companies from the consumer goods sector, these are international corporations such as LVMH, LOreal or Essilor Luxottica. Through the energy giant Totalenergies, the ETF is also benefiting from the current energy boom, with the power grid supplier Schneider Electric and the specialist for gases such as hydrogen, Air Liquide, it is also well prepared for the conversion to a carbon-free economy.
Conclusion: The Xtrackers CAC 40 is currently attractive as a depot addition.
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