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29 Jan 2016
French economy slows in Q4; GDP increased 0.2% QoQ
FXStreet (Mumbai) - Official data released today showed the French economy rose by 0.2 per cent in the December quarter in line with expectations. In the third quarter it had grown 0.3 per cent. Year-on-year the economy grew 1.3 per cent, higher than the expected 1.2 per cent growth as well as the 1.1 per cent rise seen in the preceding quarter.
The drop in GDP was primarily because of the decline in consumer spending on account of a mild weather seen in the last quarter as well as the Paris attacks which hit business sentiment across the nation.
The annual GDP grew at the fastest pace during François Hollande's presidency. However, it is still is not enough to reduce unemployment, which reached 10.6 per cent in 2015.
Consumer spending dropped 0.4% in the fourth quarter from the third. Paris terror attacks hurt the hotel industry, thereby impacting the tourism sector. Mild weather in led to a fall in demand for heating and clothing which in turn restricted spending.
With import outweighing exports trade subtracted a sizable portion from the overall GDP.
France is the second largest economy in euro zone and its performance is closely followed by the markets to gauge the health of the bloc.
The drop in GDP was primarily because of the decline in consumer spending on account of a mild weather seen in the last quarter as well as the Paris attacks which hit business sentiment across the nation.
The annual GDP grew at the fastest pace during François Hollande's presidency. However, it is still is not enough to reduce unemployment, which reached 10.6 per cent in 2015.
Consumer spending dropped 0.4% in the fourth quarter from the third. Paris terror attacks hurt the hotel industry, thereby impacting the tourism sector. Mild weather in led to a fall in demand for heating and clothing which in turn restricted spending.
With import outweighing exports trade subtracted a sizable portion from the overall GDP.
France is the second largest economy in euro zone and its performance is closely followed by the markets to gauge the health of the bloc.