World’s Second Largest Cruise Ship Boosts France’s GDP By €1 Billion

The delivery of the world’s second-largest cruise ship, Utopia of the Seas, has significantly contributed to France’s economy, contributing €1 Billion (£840 million) and boosting French GDP by 0.3% in the second quarter of 2024.

The Utopia of the Seas, built in Saint-Nazaire at the Chantiers de I’Atlantique shipyard for Royal Caribbean, has also increased French trade growth by 0.6% during the same period.

The Utopia of the Seas, with its 2824 cabins, 21 dining alternatives, 18 decks, and 5 pools is just slightly smaller than the Royal Caribbean’s Icon of the Seas.

The cruise ship was officially launched on July 19 2024, from Florida’s Port Canaveral and is designed to cater to younger travelers with three and four night journeys.

The cruise ship’s positive economic impact comes at a time when the eurozone has shown a modest growth of 0.3% in the second quarter.

This follows a similar growth rate in the first quarter of 2024, indicating that the eurozone might have turned a corner after a period of economic instability in 2023.

Germany, the eurozone’s largest economy, saw GDP fall by 0.1% in the second quarter. The fall contrasts with the eurozone’s overall pattern and indicates continued economic issues in Germany, such as high inflation, a downturn in industry, and declining export demand.

Analysts, like Pushpin Singh of the Centre for Economics and Business Research, believe that the eurozone’s improved performance is due to recent policy modifications by the European Central Bank and possible future interest rate decreases.

Spain and Italy have reported better growth, with Spain leading at 0.8% in the second quarter and Italy increasing GDP by 0.2%.

Meanwhile, according to ING’s Bert Colijn, the financial crisis in Germany has become a concern for eurozone growth.

The Utopia of the Seas’ contribution to France’s economy, combined with increased consumer spending during the ongoing Olympic Games in Paris, could further improve third-quarter economic performance.

French Finance Minister Bruno Le Maire stated that the country’s economic growth could exceed the 1% prediction made earlier this year.

Anja Sabine Heimann of HSBC Germany highlighted an ongoing decline in industrial orders and consumer resistance in Germany, warning of increased recession risks. Despite near-zero growth over the last two years, Germany almost avoided a recession.

Reference: Independent, The Guardian

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Source: Maritime Shipping News