France falls into another recession

Suzie Neuwirth

FRANCE’S economy contracted 0.2 per cent in the first quarter of the year, putting the country into its second recession in four years, according to official data released today.

Germany – the Eurozone’s strongest economy – grew just 0.1 per cent over the period, below analysts’ expectations of 0.3 per cent.

The disappointing data contrasts to yesterday’s figures, which showed that industrial output in the Eurozone had jumped one per cent in March, beating economists’ forecasts.

The European Commission had warned earlier this month that France would plunge into another recession and said the Eurozone’s economy would shrink 0.4 per cent.