After contracting by 0.2% in the first quarter of 2013, the French economy has fallen into recession for the third time in four years, official figures show.
The National Institute of Statistics and Economic Studies data shows the new contraction follows the 0.2% fall in output during the last quarter of 2012 – a result that is worse than what forecasters were expecting. The European Commission, however, had warned that it expected France to go into recession in 2013, earlier in May, and predicted that its economy would contract by 0.4% over the course of the year.
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According to the French statistical agency, the bulk of the contraction comes from a shrinking trade balance – while exports reduced by 0.5%, imports "reached stability", growing by 0.1%. Household consumption expenditure was "almost stable", which means "shrinking by 0.1 per cent".
Gross fixed capital formation fell by 0.9% over the three-month period.
Figures published by Germany’s Federal Statistical Office, however, reveal that it’s economy is buoyant and has moved back into growth. The German GDP was up 0.1% in Q1 2013, following the 0.7% contraction witnessed in 2012’s fourth quarter.
Austria has narrowly avoided recession, and the Czech Republic – which has been in recession for the last five quarters – contracted by 0.8%.
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