France's economy may have received a boost from the Paris Olympics in the third quarter, according to the Bank of France. However, political uncertainty continues to weigh on its stock markets. As the Paris Olympics wrapped up on Sunday, France's economy appears to have received a boost from the influx of visitors and increased spending in sectors such as hotels, restaurants, and museums, according to France's Tourism Minister, Olivia Grégoire.
Spending on hotels in cities hosting the Olympic events rose by 16% compared with the previous year, while tourism-related sales at museums and restaurants saw a 25% increase year-on-year, Gregoire told French paper La Tribune Dimanche. Several institutional surveys suggest that the Paris Olympics are set to significantly bolster the French economy in the third quarter, outweighing the political uncertainties that emerged in late June. The Banque de France anticipates economic growth between 0.
35% and 0.45% for the third quarter, compared to a 0.3% increase in the first two quarters.
This suggests that up to 0.25% of the growth could be attributed to the Olympics, with the economic benefits largely driven by ticket sales and TV rights. In July, the national statistics institute, INSEE, also forecast that the Olympics would contribute 0.
3% to the French economy's growth in the September quarter, potentially bringing overall growth to 0.5%. Additionally, Visa data showed that consumer spending increased by more than 20% during the firs.