Daniel Ritort

France to avoid recession in 2013

INSEE headquarters in Paris

INSEE headquarters in Paris

According to France’s statistics body, the country will avoid a recession this year. The body predicted growth of 0.2% for the whole of 2013.

INSEE said the economy will grow 0.4% in the last three months of the year, after contracting 0.1% in the third quarter.

Francois Hollande, President of France, has been under pressure to revive the economy as other euro zone nations start growing and show signs of recovery, while France was last in recession in the first quarter of this year.

A recession is when an economy shrinks for two consecutive quarters. There were fears of a French “double-dip” recession, where an economy returns to recession after experiencing a short-lived recovery, but the country’s statistics agency thinks this will now be avoided.

Europe’s largest economy, Germany, has seen much of its economic success during the debt crisis driven by exports. By contrast, INSEE said French exports fell by 1.3% in the third quarter. At the same time, French household spending rose by 0.1% in the third quarter.

The government forecasts economic growth of 0.9% in 2014, lowered from a previous 1.2% forecast, with just 0.1% in growth forecast for this year. France has not had a year of negative growth since 2009.

Tags: , , , , , , , .
  • Trackbacks
  • Comments
    • […] As for France, The CEBR said it will be one of the worst performing of the Western economies, and will be overtaken by the United Kingdom by 2018. This is because of slow growth due to high taxation in addition to the general issues of euro zone economies. […]

Leave a Reply

*

  • Categories

  • Archives

    • 2014 (11)
    • 2013 (398)
    • 2012 (420)
    • 2011 (294)
  • Tags

  • Advertisements