New figures are fanning concerns that the eurozone debt crisis is driving its powerhouse economies, France and Germany, into recession reports The Telegraph.
France is heading into recession, according to its central bank, adding to fears that the eurozone debt crisis is causing the region’s strongest economies to follow their troubled southern neighbours into an economic downturn.
The forecast came as official figures from Germany, the eurozone’s economic powerhouse, showed that its industrial production and exports both fell in June. The data raised concerns that Germany too is succumbing to the crisis and will fall back into a recession.
The Banque de France now expects that France’s gross domestic product (GDP) will shrink 0.1pc in the three months to September. That would mark a recession, as it expects government figures on Tuesday to show the economy fell 01.pc in the previous quarter also.
“The outlook for the coming months suggests a slight slowdown in economic activity,” the Bank said in its latest report. Its index tracking business confidence in France, the second biggest eurozone economy, showed that sentiment weakened for a fourth month.
In Germany, officials reported that industrial production dropped 0.9pc in June against the previous month, tempering a 1.7pc rise the month before.
