Paris, Sep 23 (EFE) .- French National Institute of Statistics (INSEE) today confirmed the stagnant economy of France for the second consecutive quarter, which validates the expectation that the country will not meet its objectives growth and deficit in 2014.
detailed in the body of the Gross Domestic Product (GDP) between April and June results confirmed their forecast mid-August, after which the Finance Minister Michel Sapin, had noted that the advance of the French economy later in the year would be around 0.5%, against a target of 1%.
At the end of 2014, with these data, the public deficit will be “superior to 4% “of GDP, compared to the previous forecast of 3.8%, then the minister said in a column published in” Le Monde “.
The INSEE said today that it exports, which had gone a 0.6% in the first quarter, slowed in the second with an increase of 0.1%, while imports declined four-tenths to 0.4%, so that foreign trade had a negative impact of 0 1 points in GDP.
Consumer spending by individuals themselves moved up, up 0.4% after a decline of 0.6%, but gross fixed capital formation (investment) continued to decline, -0.9% to -1.1%, an unflattering item for what it means to anticipate their companies for the future.
production goods, on the other hand, contracted 0.1% after advancing 0.2% in the previous quarter, INSEE added, for which the full year in France accumulated growth of 0.3%.
Little were also optimistic data on business confidence in September provided by the same institution, whereby the index that summarizes the business climate remained on 91 points, nine below 100 marks the average long-term, and one less than in August.
In industry, the synthetic indicator remained stable in 96 points, while services declined by two to 91, and in construction lost one and stayed in 88 integers.
On 17 September, the Minister of Economy, Emmanuel Macron, summed up the general feeling by stating that “France is sick” and that before being picky with the situation in other countries should deal with their own.
“The problem of France is herself first. It fix our problems before being demanding with our neighbors, “he said in an interview with the radio station” Europe 1 “, in which he found that” no other choice but to act to reform “
A Day then French President François Hollande, acknowledged in his press conference semester, due to weak interest rates, the deficit was not his first priority, and said it will try to be accepted until the 2017 target to reduce it below 3%.
“I do not come to Berlin to apologize, to ask. I speak with Chancellor (Angela Merkel), as equals, “said today the German capital since the French prime minister, Manuel Valls, who is in the country on an official trip.
Asked yesterday
French request to slow the pace of deficit reduction was impossible to accomplish without damaging the weak economic growth, Merkel stressed the need to respect the community agreements, but also that the Stability Pact includes measures of “flexibility.”
At the same measures Hollande had referred in his appearance before the press, to justify claiming that the French position was not to alter the established rules, “but to use all the flexibility provided by the treaties”. EFE
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