Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Candidates Goodluck Jonathan and Mohamudu Buhari call for calm

Read more

MEDIAWATCH

Anger at mental health stigmatisation after crash allegations

Read more

THE WORLD THIS WEEK

Yemen, the Escalation; France's Three Way Race; Clarkson Shown the Exit (part 2)

Read more

THE WORLD THIS WEEK

Germanwings Crash; Co-pilot 'hid illness' on crash day (part 1)

Read more

#THE 51%

The extraordinary tale of the Egyptian mother who lived as a man

Read more

REPORTERS

Video: San Cristobal, Venezuela's tinderbox

Read more

FRANCE IN FOCUS

France's chronic umemployment problem

Read more

FOCUS

Portugal: Anger at corruption scandals, one year after bailout

Read more

YOU ARE HERE

Bistronomy: Stylish and simple eating

Read more

Growth slows towards recession

Latest update : 2008-10-14

French economic growth in the third quarter will drop to minus 0.1%, according to the Bank of France, signalling a recession.


   
The Bank of France downgraded its forecast for French economic growth in the third quarter to minus 0.1 percent on Tuesday from plus 0.1 percent estimated a month ago, signalling a recession.
   
Since the official statistics institute INSEE has already reported that the economy contracted by 0.3 percent in the second quarter of this year, the latest forecast sets France on course for a recession, defined as two quarters running of contraction.
   
The Bank of France said in a statement on Tuesday that if the economy does contract by 0.1 percent as it expects in the third quarter, the growth assured for the whole year, provided there is no further contraction, would be 0.9 percent.
   
On Wednesday, the International Monetary Fund revised down sharply its forecast for growth of French gross domestic product to 0.8 percent for the year.
   
Finance Minister Christine Lagarde has put growth for 2008 at about 1.0 percent.
   
The central bank also published its monthly index of industrial confidence which slumped to 87 in September from 94 in August.
   
The survey, carried out before the worst of the global financial crisis in the last two weeks, showed that industrial activity had slowed down markedly in September and the flow of new orders placed, both from inside France and abroad, had fallen.
   
Total orders in the books were lower than usual, stocks of finished goods had increased and were higher than desired, the industrialists said.
   
They forecast a continued slowing of activity in the short term.
  

Date created : 2008-10-14

COMMENT(S)