Arab Today, arab today france central bank expects zero gdp growth in q1
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France Central Bank expects zero GDP growth in Q1

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Arab Today, arab today France Central Bank expects zero GDP growth in Q1

Paris - Arabstoday

France is expected to see a zero GDP growth in the first quarter of the year according to a monthly report published on Wednesday by the French Central Bank, Banque de France.Activity in the industrial sector registered a slight increase at the end of January. However, it is expected to wane as \"forecasts point to a steady level of activity in the coming weeks.\"The capacity utilization rate, indicating the rate at which potential output is met, lost 0.2 percentage points compared to December 2011, remaining below its long-term average. France is now producing 78.9 percent of its potential.Services grew at a slow pace in January, \"due to a decline in the temporary work sector and in IT activities\".The business sentiment indicator in industry remained stable at 96 while services lost one point, falling to 93.The French government had already cut the 2012 growth forecast from 1 percent to 0.5 percent on Jan. 30, taking into account the slowdown in economic activities.

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