World
France's Economy Did Not Grow In Q1 2022, GDP Growth Rate At Zero As Country Faces Energy Crisis And Record Inflation
Swarajya Staff
Apr 29, 2022, 01:28 PM | Updated 02:43 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Hit by serious energy crisis, soaring inflation and supply chain problems exacerbated by the Ukraine war, French gross domestic product (GDP) was unchanged in the first quarter of this year.
The INSEE official statistics agency said preliminary data showed no change in GDP for January-March. The Q1 2022 GDP data represents a sharp decline from the final three months of 2021 when the euro zone's second-biggest economy expanded 0.8%.
"France’s economy unexpectedly stagnated at the start of the year, sounding an early warning of the damage to Europe from soaring energy costs and worsening supply snarls following Russia’s invasion of Ukraine." Bloomberg reported.
"Europe’s near-term outlook is exceptionally uncertain. Another round of sanctions -- including a possible ban on Russian oil imports -- risks hammering industry, while record inflation and plummeting confidence are jeopardizing consumer demand." the report further added.
Household -level spending, the strong pillar of French economy, contracted 1.3% in the quarter as consumer confidence waned amid concerns over soaring energy prices.
Inflation touched a new high of 5.4% in April.
ð«ð· #France Unexpectedly Stagnates as War Takes Toll: GDP Update â Bloomberg
— Christophe Barraudð¢ð³ (@C_Barraud) April 29, 2022
*Link: https://t.co/y6ytBUXLB5 pic.twitter.com/NGc7tryXky
Despite price caps introduced by the government, energy prices increaed by over 26%.
The latest economic numbers will pose a serious challenge to French President Emmanuel Macron as the country heads to elect a new parliament next month.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.