Gross domestic product showed no variations in the second quarter after rising 0.7% in the previous quarter.
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France’s economic output was zero in the three months to June, according to its official statistics body Insee, coming in below economists’ expectations which had tipped a 0.2 per cent increase. Trade’s contribution to growth was at its highest since the last quarter of 2011.
The numbers kick off a morning of eurozone GDP figures that are expected to show that a weaker euro exchange rate, lower oil prices and the European Central Bank’s massive stimulus program have done little to lift the region onto a higher growth path.
Companies that were selling down their inventories after building them up in the first quarter accounted for much of the stagnation, dragging GDP growth down by 0.4 points. That was below economist forecasts for a 0.2% rise and marked a sharp slowdown from the 0.7% jump in the first quarter.
Growth in consumer spending-the main driver of the French economy-slowed to 0.1% in the second quarter from 0.9% in the first. It edged down 0.1%, in contrast to a 0.8% gain in the preceding three months.
Without a stronger recovery, countries in the eurozone are struggling to tackle high debt and unemployment. “Exports grew a lot faster than imports thanks to the weak euro, with goods exports in particular growing strongly”.
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“We must stay the course”, Mr. Sapin said.
