Financial and Business News

French Economy is going in recession

The gross domestic product of France is expected to decrease by 0.1 percent in the third and fourth quarters, and account growth up to 0.9 percent throughout 2008, according to preliminary data removed on Friday by the National Institute of the INSEE. It means that the second-largest economy in the eurozone is entering a technical recession for the first time in over 15 years during the third quarter.
In June, the last report, the National Statistics Institute announced that it expects growth of 1.6 percent this year after 2.1 percent in 2007 and 2.4 percent in 2006. Its new forecast corresponds roughly to revised data from the government, which expects 1 percent growth in 2008. Although the government has forecast quarterly, INSEE provides a delay of 0.1 percent in the third to fourth quarters, together with massive job losses. According to Insee forecasts economic growth of France will delay than the euro for the third consecutive year, significant risks to the French economy into account the credit crisis and volatile oil prices.
Global credit crisis threatens to slow further growth of the global economy and Insee expects consumer spending to fuel growth in recent years to remain sluggish in the second half of the year. After a contraction of 0.3 percent of GDP in April-June, France will mark three consecutive quarters of negative growth, but Eric Dubois, head of the Bureau for Economic Research at INSEE, refused to talk about recession and stressed that the reduction was "modest" and expected that GDP growth will be positive for the year.

Labels: Financial News

posted by Zoritza Petrova @ 3:39 AM