France faces recession in 2009: Ministry
France will fall into recession this year, with growth likely to shrink by at least 1.0 per cent, the government said today following a sharp contraction in momentum in fourth quarter 2008.
By Agencies |
PARIS: France will fall into recession this year, with growth likely to shrink by at least 1.0 per cent, the government said today following a sharp contraction in momentum in fourth quarter 2008.
Gross domestic product will "shrink by at least 1.0 per cent in 2009," a source close to Finance Minister Christine Lagarde said.
"It could be minus 1.0 or minus 1.1 or minus 1.2 per cent," the source added. The ministry had previously forecast an expansion this year of between 0.2 and 0.5 per cent.
Earlier Thursday statisticians at the national statistics body INSEE, citing provisional figures, said growth contracted 1.2 per cent in the fourth quarter of 2008, when overall growth came to 0.7 per cent.
The reported quarterly performance was the worst since the 1974 when the country was suffering from an economic crisis brought on by oil market disruptions.
The gross domestic product figures are scheduled to be officially released early Friday but were revealed today by INSEE statisticians who are protesting plans for their transfer from Paris to Metz in eastern France.
Lagarde said she deplored the early release of the INSEE data.
The economy managed to expand by 0.1 per cent in the third quarter of 2008 after contracting in the second, thereby narrowly averting recession defined as two successive quarters of negative growth.
Gross domestic product will "shrink by at least 1.0 per cent in 2009," a source close to Finance Minister Christine Lagarde said.
"It could be minus 1.0 or minus 1.1 or minus 1.2 per cent," the source added. The ministry had previously forecast an expansion this year of between 0.2 and 0.5 per cent.
Earlier Thursday statisticians at the national statistics body INSEE, citing provisional figures, said growth contracted 1.2 per cent in the fourth quarter of 2008, when overall growth came to 0.7 per cent.
The reported quarterly performance was the worst since the 1974 when the country was suffering from an economic crisis brought on by oil market disruptions.
The gross domestic product figures are scheduled to be officially released early Friday but were revealed today by INSEE statisticians who are protesting plans for their transfer from Paris to Metz in eastern France.
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Lagarde said she deplored the early release of the INSEE data.
The economy managed to expand by 0.1 per cent in the third quarter of 2008 after contracting in the second, thereby narrowly averting recession defined as two successive quarters of negative growth.
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