French Central Bank reported mild recession, but its data differs from INSEE
French economy into mild recession, but trade deficit reduced
On 10 January, the French Central Bank announced that the French economy contracted at 0.1 per cent in the fourth quarter of 2012. However, two days ago the customs service office reported that the national trade deficit reduced in November by €0.4 billion, compared to October.
According to AFP, the latest estimate from the Bank of France differs from the data coming from the national statistics office (INSEE). INSEE reported that the French economy has just averted recession this year by showing marginal intermittent growth. Overall, the second largest economy in Eurozone seems to stand between minimum growth and recession. However, the technical definition of recession is two quarters running of contraction of output in a quarter from output in the previous quarter.
INSEE data indicates that in the third quarter of 2012, the French economy grew by 0.1 per cent after it contracted on the second quarter of 2012 by 0.1 per cent and by 0.2 per cent in the fourth. Moreover, the office announced on Thursday that the national industrial output had rallied by 0.5 per cent in November from the level in October when it had contracted by 0.6 per cent on a revised basis from output in September.
François Hollande’s government aims to enhance France’s competitive position by boosting exports and reducing national trade deficit. On 8 January, the French customs service reported that the national trade deficit reduced to €4.3 billion in November from €4.7 billion in October. According to the customs service report, total exports to and imports from other countries in the European Union, and particularly concerning Germany, had fallen sharply over three months. Moreover, there had also been a drastic fall of trade with the United States in refined products and with the Middle East in crude oil.
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