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French economy stagnant with zero growth in Q2

Staff writer |
The French economy recorded zero growth in the second quarter of 2014, a repeat of the weak performance registered in the first quarter, the National Statistics Institute (INSEE) said.

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Although consumption, which is one of the motors of growth, rebounded in the April-to-May period, it was not enough to offset other factors like a drop in trade and a decline in capital accumulation and disposable income.

INSEE said Gross Domestic Product (GDP) was flat at 0.0 percent for the first two quarters of the year, which will create problems for the government in getting tax revenues to reduce public deficits and also to tackle high and increasing unemployment.

France's jobless rate is just over 10.2 percent, including foreign dominions, with more than 3.4 million people out of work, officially, and probably over 5.0 million actually seeking full-time employment.


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