Between April and June, the transalpine country did not move. The growth of the French economy was zero (0,0%) in the second quarter of 2011 after an increase of 0,9% in the first quarter. This was announced by the French National Institute of Statistics (Insee).
The figure confirms a slowdown in activity, anticipated by analysts, but even more than expected: the Bank of France had forecast a growth of 0,2% in the second and third quarters.
According to what reported by Insee, consumption decreased by 0,7%, compared to +0,4% in the first quarter and investment too, albeit to a lesser extent, decreased by +0,9%, compared to +1,2% in the first three months. Final domestic demand contributed negatively to GDP growth (-0,2 points after +0,5 points).
There was a large drop in imports which fell by 0,9% against an increase of 3,1% in the first quarter, while exports were zero, compared to +1,8% at the beginning of the year. Thus the trade balance made a positive contribution to GDP growth (+0,3, after -0,5 points).
Total output of goods and services remained stable in the second quarter, after seeing a 1,4% increase in the first. Manufacturing production recorded the greatest collapse since the summer of 1968, falling by 0,6% (against +2,9% in the previous three months). All sectors were down except the agro-food sector.
However, too good data were not expected as the Elysée undertook to reduce the deficit to 5,7% in 2011 and to bring it to 4,6% in 2012 and to 3% in 2013. But with such weak growth, it will be hard to stay in line.
Economy Minister François Baroin declared in a radio interview that France "will remain in line with the growth objective for 2011". The government has forecast a 2% increase in GDP this year and 2,25% in 2012.
