France GDP set to slow in third quarter

| August 9, 2010 | 0 Comments

The Bank of France has predicted the French economy will grow by 0.3% in the July to September quarter, following growth of 0.4% in the second quarter.

The recovery of the euro zone’s second largest economy is therefore likely to lose a little momentum, partly due to a slowdown in industry production at the start of the third quarter.

INSEE, the French statistics bureau will publish its growth figures for the second quarter later this week.

In the meantime, France, like many other European countries, has introduced tough austerity measures to reduce its budget deficit.

France’s Government injected large amounts of cash in to the economy to stimulate growth but this has resulted in high levels of debt.

INSEE recently reported that France’s public debt rose to 80.3% of national output in the first quarter of the year.

EU rules state that debt should not exceed 60% of GDP.

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