France: I did it my way

Exports faced a sudden stop during the last months (see WERO 8 January) but a partial recovery should be expected in key export champions as latest output, orders and inventories data was reassuring for them. First, transport equipment benefited from an additional month of orders just during the last two months. As a result, the output of the sector and inventories of finished goods increased in the preparation of shipments to come. Pharmaceuticals, another key export performer, also experienced a steady performance with a +11% y/y output increase in the last quarter. However, cars, textiles and intermediate goods exhibited a different profile. Their output is shrinking and exports are still expected to contract in the near future. The car exports drop increased pace during the last months and plastics and metals followed suit. All in all, overall export growth should turn out smaller in 2020 (+EUR8bn, after +EUR16bn in 2019) and be more concentrated in a few sectors while hiding export losses in others