France faces recession

yesterday.
In the last three months of 2012, France’s economy contracted by 0,3 percent. This follows a growth of 0,1 percent in the previous quarter, meaning that the US$2,8 trillion economy would slid into recession and drag the European bloc, already fragile, into a spiralling economic troubles.

The worse performance, failing to meet the 0,3-percent growth forecast, stemmed mainly from sluggish industry business and poor household consumption, according to the statement.

Last year, the eurozone’s main powerhouse saw its production falling by 2,2 percent compared to 3,2 percent growth in 2011 as “every activity contributed to the decrease,” INSEE said.

Household consumption was stable, exports were up 2,3 percent while imports inched down by 0,3 percent.

“Growth in 2013 should be reconsidered,” said Finance Minister Pierre Moscovici shortly after the release of the Insee economic report, given “the situation is not good and the figures are alarming”.

Moscovici called for “a true European thinking over a balance between deficit reduction and promoting growth”.

France eyes to expand its gross domestic product by 0,8 percent this year on efforts to axe public spending and improve competitiveness. – Xinhua.