French Economy in Trouble

BBC News World Edition ^ | 8/20/03

[JerseyHighlander]

New fears have been raised over the health of Europe's economy after France reported negative growth.

The French economy shrank by 0.3% during the April to June period, official figures revealed.

France's economy, the second largest in the eurozone, steadily weakened during 2002.

However, marginally more upbeat figures in the first three months of 2003 had raised hopes of an improvement.

But the latest contraction will dash hopes of a turnaround and is likely to weigh heavily on investor sentiment.

FRENCH ECONOMIC GROWTH Q1 2002: +0.7% Q2 2002: +0.5% Q3 2002: +0.3% Q4 2002: -0.1% Q1 2003 +0.2% Q2 2003 -0.3%

Earlier this month, both Germany and Italy announced they had fallen into recession after recording two consecutive quarters of contraction.

"We are very disappointed with this figure.... this is very negative for France," said Irina Topa, an economist at Societe Generale.

Job uncertainty

France's Prime Minister Jean-Pierre Raffarin said last month he expected the economy to grow 0.1% during the second quarter.

European countries in recession Germany Italy Switzerland Netherlands

And the unexpected contraction spells trouble for the government, which desperately needs growth to generate more tax revenues in order to try to rein in the public sector deficit.

"We expected better figures than this but it seems that, despite the drop in inflation, the bad state of the job market has weighed on consumers," said Jean-Louis Mourier, an economist at Aurel Leven.

Amongst France's economic difficulties, exports dropped by 0.6% and consumer spending eased by 0.2%.

Despite the first half year's poor performance, Mr Raffarin still predicts an expansion of 0.8-1.5% for the year as a whole.

"The second quarter was exceptional owing to the consequences of the war in Iraq, the poor international economic climate and recession affecting several of our partners. It does not represent a trend," a ministry statement said.

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[JerseyHighlander]

Photo with article:

THe previous BBC article from April on France's economic problems:
http://www.freerepublic.com/focus/f-news/902400/posts

[God luvs America]

More good news today about the pathetic french: http://www.freerepublic.com/focus/f-news/967213/posts, after yesterday things are starting to seem alright...

[marlon]

Let's see, US economy is growing at 2.4% and well on it's way to 4% growth. France's economy is at -.03% and falling. Gee that Bush is a dummy why don't we just follow France's lead they are so sophisticated. Haaaaaahhaahaha

[marlon]

Let's see, US economy is growing at 2.4% and well on it's way to 4% growth. France's economy is at -.03% and falling. Gee that Bush is a dummy why don't we just follow France's lead they are so sophisticated. Haaaaaahhaahaha

[y2k_free_radical]

Missing IRAQI & YANKEE MONET

[CFC__VRWC]

Only a 0.3% contraction of the French economy? C'mon, we can do better than that!

[Just another Joe]

So, the boycott of everything French is working, huh?

[4everontheRight]

"why don't we just follow France's lead they are so sophisticated..."
Please stop! You're killing me!

[Eric in the Ozarks]

Negative growth and not a stick of deodorant within a thousand miles...

[Rate_Determining_Step]

Shadenfranc bump!

[I still care]

"However, marginally more upbeat figures in the first three months of 2003 had raised hopes of an improvement.

But the latest contraction will dash hopes of a turnaround and is likely to weigh heavily on investor sentiment."

I bet right now they dream at night about doing nasty things to Bill O'Reilly.

[JerseyHighlander]

Months ago, Chiraq hosted Mugabe, to exchange notes on economic policy. Bush and Blair at first protested, but then let the fleas mingle freely in France.

My posting of this gave me a momentary sense of joy, and I still don't feel any guilt over the gloating.

[gathersnomoss]

Oui. I am almost out of that Frenchy-french mustard. Too bad. I'll pick up something else to have with my Australian wine.

I'm just trying to help the cause.

[Just another Joe]

Oui. I am almost out of that Frenchy-french mustard. Too bad.

Spicy brown is always a good choice. :^)

[4everontheRight]

My wine boycott alone has probably caused their economy to go wee-wee.

[Just another Joe]

I bet right now they dream at night about doing nasty things to Bill O'Reilly.

I bet they dream at night of doing nasty things to JimRob's servers too.

[.cnI redruM]

As much as I dislike the socialist pigs currrently misgoverning France, I have no desire for the average person in Paris to suffer. We should feel sympathy for the French and hope they are able to purge this current crop of leaders the like the sarcoma they are the next time France holds a nation-wide election.

[expatpat]

No, but it is Schadenfreud!

[I still care]

I was looking at the graphs on the World news, and it seemed to me only Great Britian and the US had substantial gains. Holland and France are really in trouble, aren't they?