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French economic growth ground to a halt in the second quarter of 2011,
raising pressure on President Nicolas Sarkozy to cut spending and abolish
tax breaks ahead of elections as he tries to convince nervous financial
markets that he will deliver on debt reduction targets.
France's statistics office said economic output, as measured by gross
domestic product, was zero in the April-June period versus a first quarter
that, at 0.9 percent, was the best in almost five years.
The main cause was a drop in household consumption, which was down 0.7
percent from the first quarter.
Economists polled by Reuters had on average predicted a rise of 0.3 percent
and some economists had said as market sentiment turned against France this
week that the GDP result could even have hit zero in the second quarter.
Sarkozy said following emergency talks with key ministers on Wednesday that
further steps would be considered to ensure that France made good on its
deficit-reduction targets, which depend on GDP results in coming years.
raising pressure on President Nicolas Sarkozy to cut spending and abolish
tax breaks ahead of elections as he tries to convince nervous financial
markets that he will deliver on debt reduction targets.
France's statistics office said economic output, as measured by gross
domestic product, was zero in the April-June period versus a first quarter
that, at 0.9 percent, was the best in almost five years.
The main cause was a drop in household consumption, which was down 0.7
percent from the first quarter.
Economists polled by Reuters had on average predicted a rise of 0.3 percent
and some economists had said as market sentiment turned against France this
week that the GDP result could even have hit zero in the second quarter.
Sarkozy said following emergency talks with key ministers on Wednesday that
further steps would be considered to ensure that France made good on its
deficit-reduction targets, which depend on GDP results in coming years.