Business

France to fall back into recession says central bank

  • 8 August 2012
  • From the section Business
Workers at a Citroen factory near Paris
The eurozone crisis has hit French exports

France's economy will fall back into recession this quarter, the country's central bank has predicted.

The Bank of France estimates that the economy will contract by 0.1% in July to September. It has already predicted a fall of the same level for April to June.

France posted zero growth in the first quarter of the year.

France's economy has been hit by the eurozone debt crisis, which has weakened demand for its exports.

The debt woes of fellow eurozone nations, such as Greece, Spain and Portugal, have also knocked French business and consumer confidence.

If France does fall back into recession, it will be for the second time in three years. It last returned to economic growth in the spring of 2009.

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