Analysts Expect a 5th Q of Stagnation in France

The French economy will fail to grow in the second half, extending stagnation to five quarters, national statistics office Insee predicted yesterday.

“Gross domestic product will be unchanged in the third and fourth quarters, with corporate investment, household spending and foreign trade all broadly flat, Insee said in a report. Government spending is preventing the nation from falling into recession.

The report, entitled “At a Standstill,” underlines the challenge to President Francois Hollande as he struggles both to contain the budget deficit and improve competitiveness in Europe’s second-largest economy. After two more quarters in which GDP has stalled, France will have posted five with no growth following two with expansions of 0.2 percent or less.”

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