By Sam Schechner

 

PARIS--The French economy will grow slower than originally projected in the last quarter of the year, the Bank of France said Monday, apparently blaming protests across France for projected decreases in industrial production across many sectors.

Gross domestic product will rise 0.2% in the fourth quarter of 2018 compared with the prior quarter, according to the central bank's monthly survey of business activity, conducted in November. In the prior survey, conducted in October, the bank had projected 0.4% growth in the fourth quarter compared with the third.

The slowdown is hitting restaurants and transportation, particularly automobiles--which are at the heart of repeated protests by the 'gilets jaunes', or yellow jackets, against rising taxes and lower purchasing power for many French people. Protesters wearing the yellow reflective jackets first took to the streets on Nov. 17.

The declining growth will complicate efforts by President Emmanuel Macron to overhaul the French economy--an effort already under unprecedented pressure from four consecutive weekends of protests.

Finance Minister Bruno Le Maire also warned Monday that the protests would cost the French economy. Shortly before the publication of the Bank of France figures, Mr. Le Maire said on French radio the impact of the protests would be a reduction in economic growth by about 0.1 points.

"That's less prosperity for French people," Mr. Le Maire said.

 

Write to Sam Schechner at sam.schechner@wsj.com

 

(END) Dow Jones Newswires

December 10, 2018 02:53 ET (07:53 GMT)

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