Open

Coming up

Don't miss

Replay


LATEST SHOWS

ENCORE!

High-tech acting king Andy Serkis on Dawn of the Planet of the Apes

Read more

REPORTERS

Hong Kong in rebellion against the 'motherland'

Read more

TALKING EUROPE

Dalia Grybauskaite, President of the Republic of Lithuania

Read more

MIDDLE EAST MATTERS

Gaza: children caught up in the conflict

Read more

IN THE PAPERS

Was the UN chief’s speech in Tel Aviv really a 'shameful message'?

Read more

IN THE PAPERS

France concerned about anti-Semitism

Read more

WEB NEWS

Online movement demands peace in Gaza

Read more

BUSINESS DAILY

Apple aims to satisfy China's hunger for smartphones

Read more

DEBATE

MH17: Punishing Putin? (part two)

Read more

  • UN human rights chief blasts Israel-Gaza ‘war crimes’

    Read more

  • Remains of Flight MH17 victims arrive in the Netherlands

    Read more

  • Bomb attacks kill ‘scores’ in north Nigeria

    Read more

  • Paris braced for new pro-Palestinian rally after clashes

    Read more

  • Two Ukrainian fighter jets shot down over rebel-held territory

    Read more

  • TransAsia Airways Taiwan crash leaves dozens dead

    Read more

  • Video: Fear, death and mourning in Gaza’s Khan Younis

    Read more

  • Young riders raise French hopes for Tour de France

    Read more

  • Defying UK, France to proceed with warships sale to Russia

    Read more

  • Kerry arrives in Israel to push for Gaza ceasefire

    Read more

  • US courts issue conflicting reports on Obamacare

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • Flight MH17 shot down ‘by mistake', US intelligence indicates

    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)