French Protests Force Cut in Country's Growth Forecast
December 10 2018 - 03:08AM
Dow Jones News
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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