Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

No strategy and a beige suit

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 29 August 2014

Read more

ENCORE!

Alain Choquette: A Hilarious Magician in Paris

Read more

FOCUS

France welcomes Iraqi Christian refugees

Read more

FRANCE IN FOCUS

Emmanuel Macron: A new economy minister with a pro-business agenda

Read more

THE OBSERVERS

More of this year's best Observers stories

Read more

#TECH 24

Changing the world, one video game at a time

Read more

IN THE PAPERS

Socialist Party summer conference kicks off in explosive atmosphere

Read more

  • US aid drops begin in besieged Iraqi town of Amerli

    Read more

  • EU leaders choose Tusk and Mogherini for top jobs, discuss Russia sanctions

    Read more

  • Opposition protesters clash with Pakistani police outside PM's house

    Read more

  • Austerity row overshadows French Socialist’s annual rally

    Read more

  • Egypt sentences Brotherhood leader Badie to life

    Read more

  • Ceasfire allows Gaza families to relax on the beach

    Read more

  • S. Africa condemns 'military coup' in Lesotho

    Read more

  • Kerry calls for 'coalition of nations' to battle IS militants

    Read more

  • Ukrainian plane with seven on board crashes in Algeria

    Read more

  • Exclusive: Fabius warns Russia of more sanctions

    Read more

  • IMF backs Lagarde amid French corruption probe

    Read more

  • Ebola drug ‘ZMapp’ heals all monkeys in study

    Read more

  • British killer escapes from French psychiatric hospital

    Read more

  • Police hunt for British boy with brain tumour taken to France

    Read more

  • Ukraine to relaunch NATO membership bid

    Read more

  • Suriname leader’s son pleads guilty to courting Hezbollah

    Read more

  • Mapping Ukraine: Canada and Russia in ‘tweet for tat’ row

    Read more

France

France halves growth forecast

Latest update : 2012-10-05

France’s national statistics institute INSEE on Thursday halved its 2012 growth forecast to 0.2 percent, predicting zero growth in the third and fourth quarters and claiming "The French economy is stuck in neutral."

The French economy appears to be settling into a period of no growth according to the INSEE national statistics institute, which halved late Thursday its 2012 growth forecast to 0.2 percent.

The new forecast puts INSEE just below the government's forecast of 0.3 percent growth to bring France's public deficit to 4.5 percent of GDP as pledged to the European Union.

The French economy is stuck in neutral, said the head of INSEE's forecasting unit Cedric Audenis.

"It is not in 'drive' like the United States, but neither 'in reverse' like the eurozone overall" which is in recession, he added.


INSEE believes France will continue to escape recession, but stagnate with zero growth in the third and fourth quarter, as opposed to its previous forecasts in June of 0.1 percent and 0.2 percent growth respectively.

That would make for five consecutive quarters of no growth, an unprecedented stagnation for the French economy since World War II.

It would also make it more difficult for the French government to achieve next year its target of squeezing the public deficit to the EU limit of 3.0 percent of GDP, which is based on a growth forecast of 0.8 percent.

Audenis said 0.3 percent growth in each quarter would be necessary in 2013 to hit that target if the economy posts no growth in the final half of 2012.

INSEE also forecast on Thursday that unemployment in mainland France will reach 10.0 percent in the third quarter of 2012, the first time since 1999, and end the year at 10.2 percent.

(AFP)

Date created : 2012-10-05

  • EUROZONE

    Eurozone unemployment hits record 18.2 million

    Read more

  • FRANCE

    Thousands march in Paris against 'austerity'

    Read more

  • FRANCE

    French budget sees modest cut in state jobs

    Read more

COMMENT(S)