French economy falls back into recession

The French economy has slipped back into recession, the INSEE statistics agency announced Wednesday, as the eurozone recession entered a sixth quarter — longer than the slump that hit the region during the 2008-2009 financial crisis.

French GDP dropped by 0.2 percent in the first quarter of 2013 following a similar fall in the final quarter of last year, preliminary data from the national statistics agency INSEE said Wednesday. The report cited weak exports and a drop in investment and household spending as factors in the decline.

The EU's official Eurostat statistics agency also announced Wednesday that nine of the 17 eurozone nations are now in recession, with France a notable addition to the list. Overall, the single currency bloc's economy contracted 0.2 percent in the January-March period from the previous three months.

Although it is an improvement on the previous quarter's 0.6 percent decline, the new figures are an unwelcome setback for a region grappling with a debt crisis that has forced governments to slash spending while raising taxes. Austerity measures have inflicted severe economic pain and social unrest, including protests that have brought tens of thousands into the streets across Europe.

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