France Q3 Growth Slows... GDP Growth Rate 0.2%

[Image source=Yonhap News]

[Asia Economy Reporter Yujin Cho] The French economy's growth pace slowed in the third quarter due to factors such as rising inflation.

According to Bloomberg on the 28th (local time), France's GDP growth rate for the third quarter of this year was preliminarily estimated at 0.2%. Although growth slowed compared to the second quarter (0.5%), it exceeded market expectations (0.1%).

Following the geopolitical crisis caused by the Ukraine situation, the French economy experienced a contraction of -0.2% in the first quarter but shifted to growth in the second quarter.

In the third quarter, household consumption did not increase due to the impact of rising prices, and foreign trade growth was also sluggish. France's consumer prices in October rose 6.2% compared to a year earlier, marking the highest inflation rate since 1985.

Energy prices increased the most at 19.2%, and food prices also rose by 11.8%, placing a burden on households.

When converted using the indicator (HICP) used by the European Central Bank (ECB), the inflation rate was 6.8% in July and 7.1% in October.

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