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French economy sees zero growth in Q2

France's government has said the economy saw zero growth in the second quarter, amid worries that Europe's No. 2 nation is hovering on the edge of a new recession.

twitter-logo Associated Press   Paris     Last Updated: August 14, 2012  | 00:00 IST

France's government has said the economy saw zero growth in the second quarter, amid worries that Europe's No. 2 nation is hovering on the edge of a new recession.

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

The central bank and analysts had forecast a 0.1 per cent 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.

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