French Economy Loses Steam in Challenge to Macron’s Budget Plans
- Insee sees growth decelerating sharply in coming months
- French government due to present 2024 budget end-September
While the euro area’s second-largest economy will avoid a recession, predictions show a slow down in expansion.
Photographer: Benjamin Girette/BloombergThis article is for subscribers only.
French economic growth is set to ease in the coming months, making it harder for Emmanuel Macron’s government to deliver on pledges to rebuild public finances after the pandemic and Europe’s energy crisis.
While the euro area’s second-largest economy will avoid a recession, national statistics agency Insee predicts the quarterly rate of expansion will drop to between 0.1% and 0.2%, from 0.5%.