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.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu