French economy stagnates in second quarter

12th August 2011, Comments 0 comments

The French economy recorded zero growth in the second quarter of 2011 despite a robust 0.9% growth in the first quarter, official data showed Friday.

The growth slowdown shown in the figures released by the French statistics agency INSEE had been expected by analysts although the central Bank of France as late as Monday was forecasting growth of 0.2% for the quarter.

Household spending dipped by 0.7% while investment slipped 0.9% amid troubled times for an economy buffeted by market turbulence and in the grip of the eurozone crisis.

Economy Minister Francois Baroin said the results were disappointing but added that France remained on target to record 2.0% growth for the full year.

© 2011 AFP

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