French economic growth at zero in Q2

| August 12, 2011 | 0 Comments

France’s economic growth showed a reading of zero in the April to June quarter, compared with 0.9% in the previous three months, according to Insee, the national statistical agency.

The reading was short of forecasts of a 0.3% rise for the quarter.

The lack of growth was attributed to a fall in household consumption, which was down 0.7% in the three month period compared with a rise of 0.4% in the first quarter.

France, which is the euro zone’s second largest economy, is under pressure to reduce its public deficit.

However, the Government has said it is looking to cut its deficit which stood at 7% of GDP at the end of 2010 – most euro zone countries are attempting to get their deficits below 3% - in accordance with EU rules.

Meanwhile, investors are concerned that France could be the next country to lose its AAA credit rating – something which the Government has denied.

In other news today, the Greek economy contracted by 6.9% in the three month period on an annual basis, however, this was slower than the 8.1% contraction in the first quarter.

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