The French economy has contracted unexpectedly for the first time since President Emmanuel Macron took the office. This revived discussions about the deterioration of the common European perspectives at the end of 2019. The gross domestic product of the second-largest economy in the Eurozone reported a decrease of 0.1% in the fourth quarter of 2019 amid a fall in exports and a significant decline in factory inventories. In comparison, analysts expected the economy to record a growth of 0.2%.

The shrinking index is another blow for Emmanuel Macron, who is facing massive protests and strikes against his pension reforms. His government has repeatedly cited France’s relative strength in Europe as a sign that its tax and labor reforms are fruitful for the country’s economy.

Finance Minister Bruno Le Maire attributed the poor results to problems with ports, the rail network and the exploitation of deposits, but stressed sustainable levels of private consumption and business investment.

“This temporary downturn does not call into question the fundamentals of French growth that are solid”, said Bruno Le Maire. “However, we are particularly vigilant about international uncertainty”, added he.

Consumer spending and business investment rose in the three months to December, but still posted the slowest quarterly growth of the year.

Although sentiment in the Eurozone is improving and the worst period for the region’s economy seems to be over, there are still many things that can test its sustainability.

Trade risks came back full force when US President Donald Trump renewed his threats last week to raise tariffs on EU car imports if the union did not agree to a trade deal. France avoided US customs duties on imports of wine and cheese, which would be imposed in response to a digital tax planned by the European country. New risks are emerging, such as the alleged negative impact of the coronavirus epidemic on the global economy.