French economy headed for meagre first half growth, INSEE says
Tweet
Share
E-mail
FILE PHOTO: A woman pulls a shopping cart as she shops at a local market in Nantes, France, September 17, 2024. REUTERS/Stephane Mahe/File Photo
PARIS (Reuters) - France's economy will barely grow in the first half of the year as consumer spending struggles to offset the impact of weak business activity and government belt tightening, the national statistics agency INSEE said on Tuesday.
After contracting 0.1% in the fourth quarter over the previous three months, the euro zone's second-biggest economy would grow only 0.1% in the first quarter and 0.2% in the second, INSEE forecast in its outlook.
Growth would be underpinned by higher consumer spending, which was forecast to increase by 0.4% in the first quarter and 0.2% in the second quarter, thanks to wage gains.
But that would in part be offset by flat public spending, as the government struggles to rein in its budget deficit with higher taxes, weighing on the corporate sector in particular.
(Reporting by Leigh Thomas; Editing by Bernadette Baum)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Saudi pipeline outage threatens loss of 4% of global oil supply
- Russian drone attack injures five in Ukraine's Odesa, officials say
- New attacks in Hormuz and Saudi test nerves as war's spread worsens oil disruption
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
