France’s Resilience to Trade Shocks May Not Hold Forever
France has the least open economy in the euro area and consumer staples such as food and pharmaceuticals make up a large share of the country’s exports, according to Bloomberg Economics. The economy is comparatively sheltered from the effects of the cyclical swings in external demand, and has so far proved resilient to the global slowdown. Still, an escalation of trade tensions with the U.S. -- in agriculture, in particular -- and a disorderly Brexit create large downside risks.
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