Media365
France’s economy contracted in the third quarter, defying market expectations of modest growth, as falling investment, weaker exports and rising borrowing costs compounded pressure from political instability and budgetary uncertainty.
France’s economy unexpectedly contracted in the third quarter, highlighting growing economic vulnerabilities as the country grapples with rising borrowing costs, political instability, violent protests and uncertainty over its fiscal outlook.
Gross domestic product (GDP) fell 0.1 per cent in the July-September quarter compared with the previous three months, according to data released by statistics agency Insee. The contraction came as investment continued to decline and exports weakened.
The reading missed economists’ expectations of 0.1 per cent growth, according to a Bloomberg survey, pointing to a weaker-than-anticipated performance of the eurozone’s second-largest economy.
The latest figures add to concerns over France’s economic outlook, with mounting fiscal pressures and political uncertainty weighing on business confidence and investment.
