French economy stalls

on 14/08/2012 08:04:04

France's economy saw zero growth in the second quarter, fuelling fears that Europe's second largest economy is hovering on the edge of a new recession.

The Insee statistics agency released preliminary estimates in line with its earlier forecast of zero growth for gross domestic product in the quarter. It is the third straight quarter without growth.

The central bank and analysts had forecast a 0.1% contraction for the quarter.

France has so far avoided a new recession even as other European economies succumbed amid the continent's debt crisis.

Insee also showed that consumer spending shrank and imports grew more than exports.