Don't miss

Replay


LATEST SHOWS

REPORTERS

From the archives: Caught in the crossfire in Colombia

Read more

ENCORE!

Video: Harlan Coben on suspense, suburbia and success

Read more

EYE ON AFRICA

Democratic Republic of Congo: Inside Camp Garlic, a stronghold of ADF militia

Read more

IN THE PAPERS

Rousseff defends her track record

Read more

IN THE PAPERS

More debates on the economy, not on the burkini

Read more

BUSINESS DAILY

Apple set to face record tax penalty from EU

Read more

MEDIAWATCH

Weiner strikes again

Read more

THE DEBATE

Colombia's Path to Peace: Can historic deal with FARC rebels work? (part 1)

Read more

THE DEBATE

Colombia's Path to Peace: Can historic deal with FARC rebels work? (part 2)

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)