Business cycle: France's economy shrinks surprisingly - unrest and high interest rates weigh heavily
Political unrest and rising interest rates are weighing on the economic situation in France. The country seems unable to calm down - new demonstrations have been called for this Saturday.
France's economy unexpectedly deteriorated in October, with the private sector's purchasing managers' index falling to 48.4 points from 51.1 in September, according to S&P Global. This is below the 50 mark, indicating a shrinking economy, and is worse than the 50.5 expected by economists surveyed by Reuters. The decline comes amid rising interest rates, political unrest, and protests against high living costs, with students and "yellow vest" groups calling for new demonstrations.
France's government is also facing a budget crisis, with the yield on 10-year government bonds rising above 5%, its highest level in 24 years.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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