French economy should stave off recession in 2022, predicts Bank of France

The French economy should avoid a recession at the end of 2022, the Bank of France forecast on Thursday. 

France’s national bank predicted that the economy will grow an anaemic 0.1% in the final four months of this year, avoiding a recession, which is two consecutive quarters of negative economic growth. 

Hit hard by soaring energy prices and the cost of living crisis, France’s GDP fell 0.2% in the third quarter of 2022. There is a similarly bleak picture across Europe, with several leading economies taking a hit. 

GDP, or Gross Domestic Product, is the total value of goods and services produced within an economy. 

The Bank of France said the figures were “good news”, showing that French companies were resilient. 

Services and construction did better than expected in November and there had been an “increase in activity” said Olivier Garnier, Director General of Statistics at the French bank. 

“Overall, there is no fall in activity at the end of the year”, he added.

GDP should grow by 0.1% in the fourth quarter, confirming the previous forecast of a “ very slight increase.”

“Of course, it is still marred by uncertainty”, Garnier continued, but “we have an activity which is resisting well, and even rather a little better than expected”.