The French economy has experienced a deceleration in its growth rate, according to Olivier Garnier, Chief Economist at the Bank of France. The nation’s output rose by merely 0.1% in Q3, a significant dip compared to the 0.5% growth witnessed in Q2. This information is based on a survey involving approximately 8,500 firms, as reported on Monday.
Despite the slowdown, PMI indicators suggest that France is not on the brink of an imminent recession. Business leaders are optimistic about an upturn in both industrial and service sectors starting this October. Moreover, they expect the construction sector to maintain its stability.
The French economy has demonstrated resilience amid global economic challenges. It has managed to withstand weaker Chinese demand and the energy crisis that occurred last winter. One key factor contributing to this resilience is the stabilization of supply difficulties and a drop in raw material costs.
Interestingly, France’s economic performance has outpaced Germany’s, one of its leading European counterparts. The nation’s ability to adapt to these challenges and maintain steady growth amidst a slowing global economy underscores the robustness of its economic structure and policies.
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