Key Checks :
- Olympic could helps 0.25% growth in Q3 growth
- Investments hit by political situations which causes construction sector.
- The manufacturing sector faces a huge crisis with very low EV (Electronic Vehicle) Demands in the market.
Hosting the Olympic Games in France gave a huge service boost in August. The country’s political crisis impacted the economic standard of the central bank said on Tuesday in its monthly business survey.
The euro zone’s second-biggest economy is on course for underlying growth of 0.1-0.2% in the third quarter from the previous month, the Bank of France said, leaving its estimate unchanged. By Reuters
Increasing the activity in hospitality, and event management in the Olympic games could add another percentage of points in the Paris region itself.
On the other hand, However, the full impact, including ticket sales, broadcasting revenues and employee bonuses, was not fully reflected in the survey, the central bank said. By Reuters
forecast on monday the France National Statistics Agency would see 0.4% growth in the third quarter but it would then reverse o.1% and this contraction happened due to the Olympic boosts.
Other than the services sector, 8500 businesses face a big challenge due to the manufacturing struggle as demand for EV and transport equipment makers deals with the supply chain issue.
However, the construction sector remains quiet due to the the political crisis on the decisions for new investments and public contracts in the country.
The Olympic Games also affect the recruitment and HR sector of the country which is about 36% in August, up from 33% in july.