French GDP contracts 0.1% in third quarter of 2012: Bank of France

Flags of France and Europe hang on the facade of the Bank of France headquarters in Paris. (file photo)

The Bank of France says Europe’s second largest economy has contracted in the third quarter of 2012 as the eurozone continues to grapple with economic woes. The bank’s survey indicated on Monday that France gross domestic product (GDP) has shrunk by 0.1 percent during the period.

(PressTV) Data also showed a decline of activity in both services and industry.

Should the statistics be confirmed by France National Institute of Statistics and Economic Studies (INSEE), it would be the first quarterly contraction since France came out of recession in 2009.

The gross domestic product in France has stagnated over the past nine months and economists see no signs of improvement on the horizon. Last week, INSEE forecast zero growth for France in the final quarter of the year.

On September 28, INSEE data also revealed that France’s public sector debt soared to over 90 percent of the crisis-hit country’s gross domestic product (GDP) in the second quarter of 2012.

Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Spain, Portugal, Italy, and Ireland.

The worsening debt crisis has forced the EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.



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