France sees recovery struggling to gain momentum

France’s economy is set to grow by only 0.2 per cent in the second quarter of 2014, the central bank forecast today, hindered by faltering company morale. 

The outlook comes despite a pro-business push by the government seeking to tame unemployment and cut the deficit.

The Bank of France estimated that the euro zone’s second-biggest economy would also grow 0.2 per cent in the first three months of the year, half the euro zone average according to a Reuters poll of economists. Germany is forecast to grow 0.7 per cent.

Economists polled by Reuters expect on average that the INSEE national statistics agency will report first quarter growth of 0.2 per cent for France when it publishes GDP data for the period on May 15th.

President Francois Hollande has made cutting unemployment, at 10.2 per cent, his priority, but has made little headway, driving his approval ratings to a record low of 18 per cent, according to an OpinionWay poll released yesterday.

Read more: France sees recovery struggling to gain momentum - Economic News | Ireland & World Economy Headlines |The Irish Times - Mon, May 12, 2014