France Confirms Zero Growth in Q2

French economy stagnated for the third consecutive quarter in the April-June period this year due to weak contribution from households’ consumption and foreign trade balance, the national statistics bureau Insee said on Friday.

Persistent effects of global recession and turbulent financial markets forced French consumers to cinch up their belts, with their purchasing power, the country’s main growth engine, falling 0.1 percent over the period, the Insee said.

In the second quarter, foreign trade balance, which comprised of a 1.7-percent increase in imports and a 0.2-percent growth in exports, contributed negatively to GDP growth.

Insee data also showed unchanged performance of production in goods and services from April to June at minus 1 percent with those of inventories reported a 0.3-percent increase, better than the 0.1-percent rise in the first quarter.

For the full year, Insee forecast the gross domestic production (GDP) growth of the French economy to stand at 0.2 percent, making it hard for the eurozone’s second largest economy to recover with unemployment exceeding 10 percent.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza