France’s gross domestic product (GDP) decreased by 0.2 percent in the first quarter of 2013, the French national statistics agency Insee announced May 15. Recession is defined as two consecutive quarters of negative GDP growth. In the previous quarter, France’s GDP also decreased by 0.2 percent in the last quarter of 2012.
Imports were nearly stable, but exports declined, so foreign trade weighed down the GDP. Household expenditure was fairly stable, but gross fixed capital formation (GFCF) diminished.
Factors contributing to the decreased GFCF include less housing starts, decreased construction investment, and a decline in general government investment.
“Expenditure in manufactured goods was also poorly oriented,” notes the Insee report.
Euro Zone Decline
The euro zone also saw another contraction in the first quarter of 2013. Its GDP decreased by 0.2 percent, less than the 0.6 percent decrease in the last quarter of 2012, according to statistics released by Eurostat, the European Union statistics agency, on May 15.
Euro zone countries in recession include Czech Republic, Spain, France, Italy, Cyprus, Netherlands, Portugal, Finland, and France.
The last time Italy’s GDP saw any growth was in the second quarter of 2011. This quarter, it declined by 0.5 percent. Economists had been uncertain whether the United Kingdom would avoid recession this quarter, but statistics released by the Office for National Statistics last month allayed fears; GDP increased by 0.3 percent.
Germany avoided recession this quarter. After a 0.6 percent decrease in the last quarter, it pulled through with a 0.1 percent increase this quarter.
