French statistics agency INSEE revised its GDP reading sharply down from +0.4% to -0.1%, saying data from the construction sector had been much weaker than its earlier figures had suggested.
French economy is officially in recession after contracting by 5.8% in the first quarter due to the country’s strict lockdown measures in place since mid-March.
“I did it in 2017....I will do it in 2018”. On Sunday December 31st, President Emmanuel Macron delivered his first New Year goodwill message to the French people. Just 12 months ago no one imagined that he would be the occupant of the Élysée. Even last summer, when he had been elected, no one thought he would be in a strong position. Yet here he is, and his political situation looks robust. But it is a little too early for the new president to get out the bunting just yet. For Hubert Huertas argues that President Macron is about to face his biggest political 'opponent' – himself.
Most affected is tourism sector, with Air France estimating losses of 50 million euros, while Bank of France says fourth quarter growth cut by 0.1 pcnt.
The French National Institute of Statistics and Economic Studies, INSEE, last week published its economic forecast for the first half of 2013, predicting France will remain on the edge of recession with zero growth, ever-rising unemployment, a collapse of purchasing power and consumption in tatters. Mediapart's economics and finance specialist Laurent Mauduit argues here that the INSEE study provides a damning appraisal of the French socialist government’s austerity policies and its obedience to the fiscal compact.
