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Economy

Recession to hit France this year, European Commission predicts

media French Economy Minister Pierre Moscovici Reuters

France will slide into recession this year, the European Commission predicted Friday. It expects unemployment to hit 10.9 per cent.

While the French government is counting on a low 0.1 per cent growth, the European Commission’s spring forecast is even more pessimistic.

Dossier: Eurozone in crisis

Growth will drop 0.1 per cent, it believes, and investment will continue to decline.

The jobless figures, which hit a record number but not a record percentage in March, are expected to continue to rise to 10.9 per cent.

The commission is no more optimistic on the headline-grabbing public deficit, forecasting a rise from 3.9 per cent to 4.2 per cent, casting doubt on the government’s commitment to reduce it to 2.9 per cent in 2014.

The commission forecasts a 0.1 per cent drop in GDP for the whole EU and 0.4 per cent in the euro area this year but expects a return to growth in the second half of 2013.

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