Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / France enters recession as economy shrinks in Q1
BackBack

France enters recession as economy shrinks in Q1

France enters recession as economy shrinks in Q1

Premium

Paris: The French economy entered recession in the first quarter as manufacturing and exports continued to suffer the impact of the global economic slowdown, the national statistics agency said Friday.

The euro zone’s second largest economy contracted by 1.2% in the first three months of the year compared to the previous quarter and by 1.5% in the fourth quarter of 2008, the INSEE statistics agency said.

Two consecutive quarters of negative economic growth is a common definition of recession.

The French economy is now on track to contract by 3% this year, Finance Minister Christine Lagarde said in a statement following the INSEE report. That’s double the government’s previous forecast of a 1.5% decline this year, and follows the mere 0.3% growth recorded in 2008.

Lagarde said the goverment’s forecasts are now in line with those of international organizations, which forsee a “gradual economic recovery in 2010."

French manufacturing continued its sharp slowdown in the first quarter, with automobile production down 12.8% on the quarter, the INSEE said. Exports shrank 7.2% while consumer spending growth was stable at 0.2%.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 15 May 2009, 01:56 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App