France’s Economic Growth Expected to Stall in Q4

The Bank of France forecasts that the French economy will not record any growth in the fourth quarter of 2024. This prediction indicates that economic activity, boosted by the impact of the Paris Olympics, is expected to come to a halt. This outlook follows the country's growth of 0.4% recorded in the third quarter, which was attributed to a significant influx of tourists for the Olympic Games and financial gains from broadcasting rights.

The central bank's outlook, based on a comprehensive survey of 8,500 business executives, suggests that while business activity is expected to exhibit a slightly positive trend, it will not contribute to overall economic growth in the final quarter of the year.

Nevertheless, the bank's findings reveal that order books in industrial sectors, excluding the aviation sector, remain below long-term averages. Executives express a high level of uncertainty regarding future economic conditions, citing the variable domestic political situation and the outcomes of the U.S. elections as contributing factors.

Additionally, the report notes that price pressures, which have been on a continuous rise in recent years, have returned to normal levels. It is also reported that the ongoing issues of finding personnel have begun to diminish.