Political Instability adds to French Woes

France’s economy is at near-stall speed, trade and budget deficits widened last month and the country is embroiled in increasing political uncertainty.

The Bank of France forecast on Tuesday that the French economy posted growth of 0.1 percent in the first quarter of 2013, in line with its estimates, meaning that the euro zone’s second largest economy will have narrowly averted recession after its economy contracted by 0.3 percent in the last quarter of 2012.

But such low growth could lead France’s government to miss its budget deficit targets, which are based on growth of 0.8 percent this year.

The news came on top of widening trade and budget deficits in February and a decline in business confidence in the services sector, according to a monthly survey.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.