According to figures released by the National Institute for Statistics and Economic Studies (INSEE) on Friday, French development abruptly dropped in the third quarter, with the GDP only increasing by 0.2% after a 0.5% spike in the spring.
This occurs as the French people’s purchasing power is starting to be affected by the inflation, which spiked to 6.2% on an annual basis after slowing in August and September.
In line with the expectations of the National Institute of Statistics and a little less than the expectations of the Bank of France (+0. 25 percent), growth benefited from a slight increase in the production of services (+0. 5 percent), despite the decline in this field from the increase in the spring. one percent.
The last three months of the year will be more difficult, with a signing growth in the fourth quarter by the National Institute for Statistics and Economic Studies, which is expected to be average of 2. 6 percent for the full year 2022 (0. 1 points less than the government’s appreciation).
Maxim Darmi, a French affairs expert at Allianz Trade.
Despite the fact that data for the third quarter have not yet been released, the National Institute for Statistics and Economic Studies has already noted a decline in purchasing power in the first half.
As a result, the indicator that measures the decline in personal purchasing power (or, more specifically, “the total income available for each consumption unit”) fell by 1.8% in the first quarter and 1.2% in the second.
The National Institute of Statistics anticipates an increase in the savings rate by the end of the year, which drives households into the economy (17 percent compared to 15. 5 percent in the first half).
This summer, living families’ consumer spending on hotels and restaurants has already started to decline after falling from 12.7% in the second quarter to only 0.6% in the July–September period.
With a high level of inflation, France’s economic development is slowing.
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