FRENCH CENTRAL BANK SAYS ECONOMY SET FOR SLIGHT GROWTH IN Q1

The French economy is expected to break out of a six-month period of stagnation and register modest growth of 0.1% to 0.2% in the first quarter, according to the Bank of France. Despite declines in the construction and energy sectors, the economy saw a slight increase in value added in industry, while the services sector remained stable. The Bank of France also revised its growth estimate for the fourth quarter of 2023, stating that the economy had remained flat rather than growing by the previously estimated 0.2%. The recent farmer protests, which disrupted transportation and automotive sectors and had some impact on restaurants, contributed to this stagnation.

However, there are positive signs in certain sectors, with business executives in the industrial sector expressing confidence about their output levels in February. Particularly strong performance is expected in the food, auto, and aerospace sectors. On the other hand, sectors like rubber, plastics, and metal manufacturing are anticipated to face further contraction.

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