Don't miss

Replay


LATEST SHOWS

THE WORLD THIS WEEK

Chaos and confusion after Brexit, Istanbul Airport attack (part 2)

Read more

THE WORLD THIS WEEK

Bitter Divorce: Chaos and confusion after Brexit (part 1)

Read more

DOWN TO EARTH

Extinction crisis: Saving the planet's species from an irreversible fate

Read more

#THE 51%

Unlocking the code: Women refugees offered classes in coding

Read more

#TECH 24

Viva Technology!

Read more

ENCORE!

Marcia Gay Harden, a down-to-earth Hollywood star

Read more

YOU ARE HERE

France’s Camargue region and its herdsmen

Read more

FOCUS

The steady rise of women in Taiwanese politics

Read more

FASHION

For summer 2017 menswear, designers interrogate the complexity of modern life

Read more

Business

France to enter recession, official statistics say

Text by News Wires

Latest update : 2011-12-16

France will see a mild recession in the last quarter of the year and the first quarter of 2012, the official INSEE statistics agency said on Thursday, adding that meeting the government's modest 1% growth target for 2012 will prove a challenge.

AFP - France will fall into a brief recession and the government's 2012 growth target of 1.0 percent will be difficult to achieve, the official INSEE statistics agency warned Thursday.

INSEE said it expects France to enter a mild recession in the final quarter of this year and the first quarter of 2012.

While timid growth of 0.1 percent is expected to resume in the second quarter, INSEE analysts said gains of 1.3 percent in the second half of the year would be needed to generate the 1.0 percent growth targeted in the government's last austerity budget.

"It is clear that would be difficult," said INSEE's head forecaster, Sandrine Duchene.

She said the latest surveys indicate economic activity is slowing sharply, with gross domestic product expected to contract by 0.2 percent in the final quarter of this year and 0.1 percent in January through March 2012.

A recession is defined as at least two consecutive quarters of negative quarter-on-quarter growth.

France exited a year-long recession in the spring of 2009.

Duchene said INSEE foresees stagnation in the French economy as the primary drivers of the recovery over the past two years, investment and employment, are stalling.

"When you have such a phenomenon, restarting economic growth takes a lot of time," she explained.

INSEE revised down its forecast for economic growth this year to 1.6 percent from the 1.7 percent forecast it made in October. The government expects 1.75 percent growth.
 

Date created : 2011-12-16

  • ECONOMY

    UK should be downgraded, not us, says France

    Read more

  • FINANCE

    To lose AAA rating not a 'cataclysm', Juppé says

    Read more

  • BANKING

    Moody's downgrades France's 'big three' banks

    Read more

COMMENT(S)