French Economy Expected To Stagnate This Fall - National Institute Of Statistics

French Economy Expected to Stagnate This Fall - National Institute of Statistics

France's economy is expected to stagnate this fall, as concerns about rising inflation threaten the growth of the economy in Europe, the National Institute of Statistics and Economic Studies (Insee) said on Thursday

PARIS (Pakistan Point News / Sputnik - 06th October, 2022) France's economy is expected to stagnate this fall, as concerns about rising inflation threaten the growth of the economy in Europe, the National Institute of Statistics and Economic Studies (Insee) said on Thursday.

Stagnation of the French economy could be expected this fall amid growing instability arising from the energy crisis and high inflation, which could also hamper further economic growth, Insee also stated.

The annual growth of France's gross domestic product is expected to hit 2.6% in 2022, according to the institute's estimates.

Earlier in the day, a number of French farmers associations and supermarkets called on the government to take measures against spikes in energy prices that could lead to disruptions in agricultural production.

In July, the annual inflation in France amounted to 6.1%, hitting maximum since July 1985. In August, it slightly decreased to 5.9%.

Since the launch of the Russian special military operation in Ukraine, Western countries have adopted several packages of sanctions against Moscow, including in the energy sector. The Ukraine crisis and sanctions have accelerated Europe-wide inflation and resulted in disruptions to supply chains and a spike in energy prices worldwide.