French Economy Slows Down Amid 'Yellow Vest' Protests - Economy Minister

French economic growth is slowing down against the backdrop of events surrounding the nationwide "yellow vest" protests, French Economy and Finance Minister Bruno Le Maire said Wednesday, adding that the fourth quarter of this year would only see a 0.2 percent growth.

MOSCOW (UrduPoint News / Sputnik - 19th December, 2018) French economic growth is slowing down against the backdrop of events surrounding the nationwide "yellow vest" protests, French Economy and Finance Minister Bruno Le Maire said Wednesday, adding that the fourth quarter of this year would only see a 0.2 percent growth.

"The economic growth in the Q4 [October-December] will amount to 0.2 percent instead of 0.4 percent ... We will lose 0.1 point due to the events related to the 'yellow vests.' The National Institute of Statistics and Economic Studies confirmed it yesterday," Le Maire told the BFMTV broadcaster.

However, Le Maire refused to comment on estimates of the French economic growth for 2019.

The minister confirmed that France's budget deficit in 2019 would exceed 3 percent of the national GDP by 0.2 percent due to the need to finance socioeconomic measures announced by the president. Le Maire explained that additional funding for emergency measures would be obtained through a reduction of government procurement and taxes on digital giants.

The wave of the so-called yellow vest protests � named after the obligatory attribute of French drivers � started in mid-November.

While the French government has scrapped its planned hike in diesel taxes, which is what initially sparked the protests, the yellow vests have evolved into a broader movement against government policies and rising living costs. The rallies have been marked by violent clashes between protesters and the police, rioting, burning cars and destroyed shops and banks.

Earlier in December, French President Emmanuel Macron introduced a number of measures aimed at resolving the nation's economic and social crisis and declared a state of economic and social emergency. The proposed measures included annual bonuses for employees and exemptions from increased social security tax for pensioners earning less than 2,000 Euros (over $2,200) per month.

French Prime Minister Edouard Philippe said that the French state budget deficit could reach 3.2 percent of the national GDP instead of the previously forecast 2.8 percent in 2019.

On Tuesday, the French government submitted to the National Assembly, the parliament's lower house, an amendment to the budget that would see 111,000 policemen and gendarmes each paid a lump sum of 300 euros ($341) for working during the recent protests,