France's Economy Faces Challenges Amid Trade War Uncertainty
The French economy recorded a modest growth of 0.1% in the second quarter, according to the Bank of France. Uncertainty over U.S. trade tariffs has impacted various sectors, including industrial and services, while the wine and nightlife industries face challenges from both tariffs and extreme heat.
- Country:
- France
In a recent report, the Bank of France revealed that the French economy experienced a tepid growth of 0.1% in the second quarter. This modest uptick comes amidst ongoing concerns over U.S. trade tariffs affecting various business sectors.
The central bank's survey involving 8,500 companies highlighted growth in industrial and services sectors, yet noted setbacks in the wine industry due to tariff uncertainties. High-profile companies like Rémy Cointreau and Pernod Ricard have also felt the strain, adjusting their growth forecasts due to these issues.
Additionally, France's bar and restaurant sectors struggled with reduced customer turnout caused by soaring temperatures. Both the Bank of France and the national statistics agency INSEE project an overall growth rate of 0.6% for 2025, suggesting a cautiously optimistic outlook.
(With inputs from agencies.)
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