France reported a small economic growth in Q322 by 0.2% in the July-September period amid dull household spending and rising inflation during the quarter signalling headwind into the final quarter of the year. The reported data was in line with market expectations.
In recent months, the European Central Bank made several interest rate hikes to tame rising prices and the potential rise up ahead. Meanwhile, export weakness and risks to energy supply also weighed on the eurozone’s second largest economy.
The Bank of France Governor, Francois Villeroy de Galhau, stated that he saw no reason for a downward revision on the forecast for 2.6% GDP growth this year, showing a clear indication of weakness in the eurozone as a whole.