The French economy was found to have been lagging in the third quarter of 2016 while Spain managed to forge ahead, albeit at a slightly lower pace.
French growth of 0.2%, below expectations, was held back by continued hesitancy in consumer spending and low investment in business.
The figure was released on Friday by the French statistics agency, Insee, which noted that household spending in the quarter had not budged from its second quarter level.
The eurozone’s second largest economy was also hampered by the after effects of a series of terror attacks. The 14 July assault in Nice came just before the country’s prime tourist season.
French Finance Minister Michel Sapin said the economy had been pinched by the impact of terrorism on tourism as well as a series of labour strikes in the spring and a poor agricultural harvest.
Hotels and restaurants across the country but particularly in the capital have seen revenues tumble.
Sapin also said it seems difficult for France to reach the government’s 1.5% growth target for the year.
This will all come as bad news from President Hollande whose popularity, never strong, has plummeted. With elections scheduled for next year, Hollande has yet to declare if he will seek a further term.
In Spain, however, the economy pushed forward with growth of 0.7% despite the political stalemate embroiling the country for ten months.
Spain has been the euro bloc’s fastest growing economy in the past two years. The previous three quarters brought in growth of 0.8% each, underpinned by a strong increase in exports.
Unemployment is finally lowering too which means that some consumers have a bit more purchasing power.
Falling to its lowest level in more than six long years, the jobless figure dipped to 19% in the third quarter, according to the National Statistics Institute, due in large measure to the service sector during a bumper tourism sector summer.
Even though the rate has fallen perceptively since a peak of 27% in 2013, it remains the second highest in the eurozone and some 4.3 million people in Spain are still without jobs.
Analysts, not to mention residents, are pinning their hopes on the indicators continuing to show modest growth and enhanced business confidence in the euro area.
