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Friday, October 5, 2012

''The toxic French economic cocktail: weak growth, poor competitiveness, fiscal tightening''

From Bond Vigilantes

''Since the start of 2011 French economic growth has been extremely disappointing, falling from an annual rate of nearly 2.5% to just 0.3% in the second quarter of this year.  Of course the whole Eurozone has seen weakness over the period, but French growth has lagged that of the “core” over the period.  German GDP growth was at or above 2% for all but the last two quarters, and now stands at 1%.  Purchasing Managers’ surveys for September show more divergence, with more falls in French manufacturing and services, whilst the German surveys strengthened.''

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