France’s economic growth exceeded expectations in the second quarter of this year, with GDP expanding by 0.3%. This outperformed the projected 0.2% growth and indicates a stronger economy than anticipated. The growth was attributed to an increase in domestic demand, a rebound in investment, stable household consumption, and positive contributions from foreign trade, particularly in exports.
INSEE also predicts that the Olympic Games will further boost France’s economic growth in the third quarter. Economists also predict a 0.2% growth for the wider eurozone in the last quarter.
Standard Chartered, a London-based bank, welcomed the new Labour government, praising its economic stability and business-friendly approach. CEO Bill Winters expressed confidence in the government’s ability to address fiscal challenges and support businesses.
On the other hand, drinks giant Diageo reported a drop in sales and profits, attributing it to macroeconomic and geopolitical volatility. CEO Debra Crew highlighted challenges in the Latin America and Caribbean region but noted growth in other regions, including Great Britain.
In other news, shares in BP jumped after it reported profits that beat forecasts. However, campaign groups criticized the company for prioritizing profits over climate action. Global Witness and Warm This Winter called out BP for its substantial dividends to shareholders and lack of investment in clean energy solutions.
Overall, France’s strong GDP growth, positive outlook for the eurozone, reactions to the new Labour government, and corporate performance highlights, both positive and negative, have set the tone for economic discussions in the region.
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