French economic growth beats forecasts despite yellow vest protests and global trade tensions
The French economy beat expectations in the fourth quarter of last year despite the ‘gilets jaunes’ protests and global trade tensions.
French GDP grew by 0.3 per cent in the three months to December, it emerged today, against expectations of a 0.1 per cent rise, giving the eurozone a welcome boost.
The end of 2018 in France was marred by the yellow vest protests and violence in Paris, leading economists to fear the worst.
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But France’s statistical office, the Insee, said a sharp jump in exports of 2.4 per cent led to growth matching that of the third quarter.
It said exports were led by “dynamic aeronautic and naval equipment deliveries”.
However, consumer spending decelerated to zero per cent and investment slowed to 0.2 per cent from one per cent “notably because of the decline in businesses’ purchases of cars”, the Insee said.
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Over the year GDP growth slowed to 1.5 per cent from 2.3 per cent in 2017.
Economist Intelligence Unit (EIU) analyst Agathe Demarais said the figures, amid protests and global trade tensions showed growth remained “resilient and robust” and expected 2019 to be a repeat of 2018.