France may slip into recession, central bank warns

AP News
Posted: Aug 08, 2012 8:28 AM
France may slip into recession, central bank warns

PARIS (AP) — France's central bank is expecting the country to slip into recession during the third quarter.

The Banque de France said Wednesday that it expects Europe's second biggest economy to contract by 0.1 percent in the third quarter, which ends Sept. 30. The bank had already predicted that the economy would shrink the same amount in the second quarter.

A recession is said to occur after two straight quarters of falling output.

Many countries in Europe are already in recession in the wake of the continent's debt crisis.

The Banque de France numbers are estimates but are more pessimistic than the country's national statistics agency, Insee.

In June, that agency predicted no growth for the second quarter and a slight rebound of 0.1 percent in the third.

The government will publish its own preliminary figures for the second quarter on Tuesday.