Arab Today, arab today frances fragile economy under siege after paris attacks
Last Updated : GMT 12:09:16
Arab Today, arab today
Arab Today, arab today

France's fragile economy under siege after Paris attacks

Arab Today, arab today

Arab Today, arab today France's fragile economy under siege after Paris attacks

Terrorist attacks in Paris killed at least 129 people in scenes of carnage at a concert hall
Paris - AFP

France's fragile economic recovery is under threat after the Paris attacks, economists said Sunday, with tourism and consumer spending likely to come under siege.

"We've been observing a general climate of lethargy since Saturday," said Philippe Waechter, head of economic research at Natixis bank.

"There is risk that this generates a wait-and-see attitude, and uncertainty. Uncertainty is never a good thing for the economy."

It's a cruel irony that only hours before the attacks the French government was celebrating the best economic news in months: that France had finally returned to growth in the third quarter.

France had "exited the period of extremely weak growth that had lasted too long", Finance Minister Michel Sapin said about the 0.3 percent GDP rise in the quarter, predicting "a new phase" for the French economy.

But that was before the attacks.

- Fears for tourism -

Now the fear is that France's money-spinning tourism sector will be the first to feel the pain.
"We're worried about the clients who usually come here for the end-of-year festivities," said Evelyne Maes, president of the hotel and restaurant employers' association.

Paris is the world's top tourist destination, and tourism accounts for nearly eight percent of France's gross domestic product, with just under 84 million visitors last year.

"The attacks will probably have an impact on hotels and restaurants," said Agnès Benassy-Queré, a researcher at the Paris School of Economics.

But she added that "France is more than Paris. And I don't see any impact going beyond a few weeks."

- Different from Charlie attacks -

It is true that the French economy actually rebounded in the wake of the jihadist attacks in January that targeted satirical magazine Charlie Hebdo and a Jewish supermarket.

But after the second major attack in France inside a year, economists warned that consumer confidence could be sapped by the government's apparent inability to stop them, weighing on household spending.

"Uncertainty pushes consumers to save, and not to spend," said Waechter at Natixis.
The same holds true for corporate investment, but to a lesser extent, economists said.

"There is a risk of wait-and-see, of investments being put on hold. But it's a smaller risk," said Denis Ferrand, head of research at the COE-Rexecode institute.

Over the longer term, any lingering climate of uncertainty could also make France less attractive to highly-skilled young graduates planning to work here.

"If you live in a society that closes itself off, where everybody fears everybody else, that has got to have an impact," said Thierry Mayer, who teaches at the Sciences-Po university.

"It's hard to quantify, but we have to bear that in mind," he said.

- Psychosis or rebound? -

But economists freely admitted that an economic downturn after the attacks was no foregone conclusion.

"It's too early to say," said Ferrand. "All will depend on the collective reaction."
Some economists, including Nobel prize winner Gary Becker, have been researching the economic impact of attacks in the wake of the September 11, 2001 assault in New York and have identified two scenarios: a national rebound or, on the contrary, a national psychosis.

"In the United States the September 11 attacks did not translate into weaker activity because Americans became more united," Waechter said. "We could hope for the same thing to happen in France."

The Paris stock market, meanwhile, was unlikely to show any strong reaction to the attacks when trading opens Monday, Denis Ferrand said.

"Investors' worries are more linked to the Chinese economic slowdown than to the attacks," he said.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today frances fragile economy under siege after paris attacks Arab Today, arab today frances fragile economy under siege after paris attacks

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today frances fragile economy under siege after paris attacks Arab Today, arab today frances fragile economy under siege after paris attacks

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday