Economics
French Economic Rebound Grinds to a Halt as Virus Crushes Growth
- Statistics agency sees zero economic growth in fourth quarter
- France’s output could contract if restrictions increase: Insee
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The French economy is set to stagnate in the last three months of the year, as uncertainty and the risk of lockdowns stifle investment and consumer spending in the euro area’s second-largest economy.
Insee, the country’s statistics agency, downgraded its growth forecast to zero from 1%. It said sentiment surveys are “tinged with worry” about the near future, undermining the confidence that built up after a strong rebound in activity when France lifted its nationwide restrictions early in the summer.