French economy stagnates in second quarter while debt fears continue
Published 12/08/2011 | 11:32
The French government is under mounting pressure to convince investors that it can curb its debt with second quarter figures showing zero growth.
New figures for the second quarter of the year show a 0.7pc drop in household consumption.
Analysts had expected better figures following 0.9pc growth in the first quarter of 2011 or a five-year high
Finance Minister Francois Baroin said he remains confident about growth prospects, despite ongoing debt and banking concerns.
"I am very confident because we have economic fundamentals that are solid," he said in a radio interview.
He added that France is on target to reach 2pc growth for the year.
Other figures showed that industrial production in the eurozone fell 0.7pc in June with fewer orders from France and Germany.
Earlier this week, Britain also reduced its growth figures.