Economics
French Economy Slows as Fallout From War in Ukraine Takes Toll on Industry
- Ukraine conflict and China lockdowns exacerbate supply snarls
- Villeroy urges stable economic policy as French head to polls
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France’s economy is slowing more than previously expected as industry suffers from soaring energy costs and worsening supply constraints following Russia’s invasion of Ukraine, according to a monthly report by the central bank.
Based on a survey of about 8,000 businesses, the Bank of France now expects growth of only 0.25% in the first quarter -- half the rate it forecast in March. That’s a sharp drop from the 0.7% recorded in the final months of 2021, when France was Europe’s standout performer in rebounding from the pandemic.