French GDP fell for the first time during the presidency of Macron

Photo: Yoan Valat/EPA-EFE

Moscow, January 31 – “News.Economy.” The second largest economy in the Eurozone despite the forecasts showed a decline in GDP in the fourth quarter of 2019.

After GDP growth in the third quarter on 0,3% the majority of experts expect a continued growth of the French economy in the fourth quarter, according to forecasts of the French GDP should grow by 0.2% instead of what happened a 0.1 percent decline.

According to the National Institute of statistics and economic studies of France (INSEE), the main factors reducing the GDP of France in the last three months of last year was the reduction of inventory and reduction of export performance.

the protests, which with various degrees of intensity continued in France, 2018 in the framework of the protests of the “yellow jackets” at the end of 2019 broke out with new force on the background of the adoption by the French government pension reform. Mass protests over raising the retirement age, according to many estimates, has contributed to political uncertainty in the country.

against this background, in the fourth quarter of 2019, a French company reduced production volumes, using the available inventories. French Finance Minister Bruno Le Mayor hastened to declare that the decline in GDP in the country is a temporary phenomenon, which “does not question the fundamental factors of growth of the French economy”. Nevertheless, the decline in French GDP shows that the efficiency of the economic policy of the government headed by Edouard Philippe also not as high as earlier said French officials. The aggravation of social tension observed during the presidency of Emmanuel Macron, largely occurred after the actions themselves of the French authorities in the framework of reforms in different spheres.

in Addition to France, in the fourth quarter economic slowdown was also recorded in Italy, the decline in GDP of 0.3% in the last three months, 2019. for the Italian economy became the worst in the last 6 years.

For the Eurozone, the situation in General, when the major economies of the bloc – Germany, France and Italy – teetering between stagnation and recession, could indeed be regarded as a temporary phenomenon, as trying to say administration officials Makron, if not for her protracted: economy of France and other key countries in the Eurozone have been weak throughout 2019 – including on the background of the trade wars of the United States and China.

In the near term dynamics of the GDP of the European region can also be adversely affected by the escalation of uncertainty in world trade due to the outbreak of 2019 coronavirus-nCoV. In addition to the deaths for part ill in China this situation has led to a noticeable reduction of appetite for risky game in the financial markets, and reduce the cost of commodity assets and the reduction of passenger traffic and tourism between countries.

the Emergence of news about the GDP of France and Italy and a General economic slowdown in the Eurozone on the day of the UK out of the EU as a whole shows that the main “engine” of economic growth of Europe in the face of a number of key countries have recently explicitly started to work intermittently and London’s decision to withdraw from the European Union, not least due to doubts about the future prospects of supranational structures in the EU. Text: News.Economy