France slides towards recession as GDP goes backwards
France could be heading for a recession after revised official figures showed the economy shrank by 0.1 per cent in the first quarter.
A fall in exports and a decline in household consumption were behind the contraction, as the country – like other nations – grapples with global shocks including the Iran war and US tariffs.
The conflict has pushed up oil prices and dampened tourism while the tariffs have hit trade.
Figures released yesterday also showed inflation rose to 2.8 per cent last month, the highest rate in more than two years.
In shock: France could be heading for a recession after revised official figures showed the economy shrank by 0.1 per cent in the first quarter
Charlotte de Montpellier, senior economist at ING Bank, said: ‘Incoming data increasingly points to an economy sliding towards recession.
All in all, the economy not only started the year on a weaker footing than expected, but has also deteriorated further in recent weeks.’
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