The French market, destiny of 12% of Spanish garment articles, clothing items, footwear and complements exports, could slow down its growth rate if the protests that have taken place during these weeks persist or expand.
Spanish fashion’s top destiny is in check. The protests of the so-called yellow jackets in Paris impact the economy of the main foreign market for the sector, destiny of 12% of national exports involving garment articles, clothing items, footwear and complements. The country’s president, Emmanuel Macron, has announced a series of measures targeted towards rising the purchasing power of citizens, but the answer of protesters is yet to be known.
The Government of France has already advanced that the four weekends of mobilisation and riots in Paris could cost a tenth of the fourth quarter’s Gross Domestic Product (GDP), which stands at 2 billion euros.
That is what Economy minster Bruno le Maire stated last Sunday after visiting several stores in the country’s capital damaged by acts of vandalism. According to Le Maire, beyond the direct impact on the country’s GDP, the seriousness that involves the continuity of riots is focused also on whether the protests continue or spread out and thus reduce the amount of investments.
The Bank of France, for its part, has diminished in two tenths its prediction of growth for the local economy during the fourth quarter, reaching a share of 0.2%. From the Confederation of Small and Medium-Size Enterprises (CPME for is French abbreviation), word has it that the collective’s loss could reach 10 billion euros and that it could entail several dismissals.
France, historically, is the main partner of Spanish economy as a whole and, more specifically, so is of Spanish fashion’s. For Spanish garment, manufacturing, leather and footwear exports, the French market leads undeniably a podium that is shared, but distantly, with Italy and Portugal.
Thus, during the first nine months of the year, Spain exported fashion articles to France valued in 2.31 billion euros, whilst Italy did so by 1.89 billion euros and Portugal, by 1.56 billion euros, according to the data gathered by ICEX.
Spanish fashion exports to France have reduced its speed all the way through September with a rise of only 2%
Until September, Spanish sales in the French territory have raised by 2% moderating its growth in base to the same period last year, but in line with the advancement registered in others of the main markets. In fact, during the first nine months of the year, Spanish fashion exports have reduced in Italy and Portugal, with decreases of 0.3% and 1.7%, respectively.
Spanish exports in the sector have also reduced its pace in Germany, another of the top European markets, where they advanced by 3.3% between January and September. Where Spanish fashion evolved best during that period is actually the United Kingdom, as well as in developing countries such as Poland or China, where it registered double-digit growths.
In 2017, France gathered 12% of Spanish fashion exports. However, during recent years, the main role of the French market in the whole of the sector’s sales has eventually reduced, at the same time as the exporting activity has raised and markets have diversified. Thus, in 2009, the importance of France regarding Spanish fashion reached the 15% for example.
France is the third biggest economy in the European Union, with 67.3 million inhabitants and a GDP of 2.5 billion dollars. The country Is currently immersed in a tense environment that started a few weeks ago due to the raise of fuel prices, but that has developed into a protest for the effects of recession and cutbacks.
Macron announced late yesterday a series of measures to stop the displeasure of citizens and to improve their purchasing power. In that sense, the Government president announced a one hundred euros rise of the minimum wage, erased taxes and contributions to extra-hours and lowered the taxes of retired people who receive less than 2,000 euros a month.
The package of measures comes after Macron announced the raise of fuels and, last Friday, the prime minister Édouard Philippe, met up with a group of yellow jackets representatives. It remains to be seen, however, what will be the answer of the yellow jackets.