France: Looking Fitter Than Its Neighbors
This article is for subscribers only.
Europe is starting to feel the effects of the U.S. slowdown, and France is no exception. Export-related industrial activity has shown signs of easing in recent weeks, reflecting cooler global demand and the stronger euro. However, France is well-positioned to weather the storm.
France sends about half of its exports to its euro-zone neighbors, and it is less dependent on exports outside the euro zone than Germany. That, plus the bright outlook for French domestic demand, is why France is expected to outperform the euro zone generally this year. Economists expect growth in 2001 to stay close to the 3% pace of 2000.