2013 is inching ever closer, but New Year celebrations may be subdued for the Eurozone’s second largest economy.
The tenuous economic situation in France was highlighted today as despite recording better-than-forecast consumer confidence figures yesterday, the nation’s jobless claims increased for the nineteenth month in a row and third quarter growth was shown to have been less than previously estimated.
According to Insee, the Paris based statistics institute, French 3Q Gross Domestic Product did not rise by 0.2 per cent as initially thought but actually only increased by 0.1 per cent.
The report showed that in the third quarter stocks fell by 0.4 per cent and company investment dropped by 0.6 per cent.
This result reiterates concerns expressed by the International Monetary Fund earlier this month regarding France’s ‘fragile’ economic outlook and supports Insee’s predictions for contraction of 0.2 per cent in the fourth quarter of 2012.
Unless the French economy begins to recover more rapidly the odds of the nation improving its 15 year high unemployment level are not good.
As an economist with Standard Chartered Bank stated: ‘Given the poor outlook for France’s growth in the coming months it is difficult to see an improvement in labour-market data anytime soon. For the moment the only direction for France’s unemployment rate is up.’
As of 11:05 am
The Pound to Euro exchange rate is currently trading at 1.2220
The Pound to US Dollar exchange rate is currently trading at 1.6100
The Pound to Australian Dollar exchange rate is currently trading at 1.5514
The Euro to US Dollar exchange rate is currently trading at 1.3172
The Euro to Pound exchange rate is currently trading at 0.8180
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