Leader of France's Medef Business Lobby Observes Indications of Business Slowdown

28 Aug, 2023

Leader of France's Medef Business Lobby Observes Indications of Business Slowdown

Patrick Martin, the leader of France's Medef business lobby group, has highlighted the emergence of business activity deceleration in France, coupled with the burden of interest rates on enterprises. While France's economic growth exhibited resilience during the second quarter, Martin conveyed on France 2 TV that signals of reduced momentum have surfaced.

Martin commented, "Evidently, we are observing deceleration – investments are tapering, and consumption is waning." He also emphasized that the challenge of elevated interest rates is adding to the strain on business operations.

Recent business surveys underscore the predicament of the Eurozone's second-largest economy, with a contraction prevalent in the pivotal services sector and a protracted downturn in industrial output. In this scenario, Martin cautioned that if the government fails to match the substantial investment endeavors undertaken by competing economies, notably the United States and Germany, France could face added risks.

In July, published data revealed that France's gross domestic product (GDP) expanded by 0.5% during the second quarter, surpassing initial predictions.