CNBC2 hours agoBusiness1 min read
Euro zone economy slows to 0.4% growth in Q3 as crisis-hit France contracts
Expansion beats economists' forecasts, but France's economy unexpectedly contracts amid unrest and deficit struggles.
Quick Look
- Euro zone economic expansion slowed to 0.4% in the third quarter, beating a 0.2% Reuters poll forecast.
- Meanwhile, France's economy unexpectedly contracted by 0.1% amid nationwide unrest and high deficit concerns.
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Why It Matters
Euro zone economic expansion slowed in the third quarter following a 0.6% growth rate in the previous three months.
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Economic expansion in the euro zone slowed to 0.4% in the third quarter from 0.6% in the previous three months, statistics agency Eurostat said on Friday.
That was nonetheless higher than the 0.2% growth forecast in a Reuters poll of economists.
However, France's economy unexpectedly contracted by 0.1% as the country grapples with nationwide unrest and a struggle to tame rising bond yields as investors balk at its high deficit.
Open Questions
- What caused the unexpected contraction in France?
- How will Eurostat adjust future growth forecasts?
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This article was originally published by CNBC.
