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France’s economy shrank in the first quarter of the year as households spent less than expected due to rising inflation, statistics compiled by the authorities on Tuesday showed.
The Russian invasion of Ukraine has boosted food and energy prices, raising concerns that inflationary pressures could hamper economic recovery following the coronavirus pandemic.
Economic performance, weaker than expected in France, puts an end to strong economic growth after the pandemic, and poses a challenge to the president, Emmanuel Macron, who won a new term as president last month.
According to statistics, in the first quarter of the year, gross domestic product shrank by 0.2 percent.
Household expenditures fell 1.9 percent in the same period, worse than expected.
Inflation rose again in May to 5.2 percent – exceeding 5 percent for the first time since 1985.
Energy prices have risen as well. Food prices have risen by 4.2 percent.
However, inflation in France is not as high as in the Eurozone countries.
A record 7.9 percent was reported in Germany, while in Spain inflation reached 8.7 percent in May.
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