French economy shrinks 0.4 pc in second quarter: central bank

France’s economy shrank 0.4 per cent in the second quarter of this year, its central bank said Wednesday, better than its previous forecast of a 0.5 per cent contraction.

France’s economy shrank 0.4 per cent in the second quarter of this year, its central bank said Wednesday, better than its previous forecast of a 0.5 per cent contraction.

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“The forecasts for production and demand in the short-term appear a little less unfavourable but remain negative overall,” the Bank of France said.

The national statistics body INSEE has forecast the French economy will shrink by 3.0 per cent in 2009, which would be the worst result since 1949.