Open

Coming up

Don't miss

Replay


LATEST SHOWS

REPORTERS

Argentina: The Kirchner era

Read more

#THE 51%

Are toys really us?

Read more

ENCORE!

Child brides, the people of Syria and New York’s homeless

Read more

FOCUS

Video: Pakistan in mourning after school massacre

Read more

AFRICA NEWS

Kenya: Security law approved despite disruptions in Parliament

Read more

DEBATE

Wrecked Rouble: Putin Defiant as Currency Tumbles (part 2)

Read more

DEBATE

Wrecked Rouble: Putin Defiant as Currency Tumbles (part 1)

Read more

IN THE PAPERS

'Castro's hipster apologists want to keep Cuba authentically poor'

Read more

IN THE PAPERS

Cuban Diaspora divided along generational lines

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)