The French Central Bank forecasts growth of 0.25% in the second quarter

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Facade of the headquarters of the Banque de France ‘Banque de France’ in Paris, France, March 12, 2018. REUTERS/Charles Platiau/

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PARIS, June 14 (Reuters) – France’s economy is expected to avoid falling into recession in the current quarter after contracting in the first three months of the year, the central bank said on Tuesday.

The euro zone’s second-largest economy will grow by around 0.25% in the three months to the end of June compared with the first quarter when it shrank by 0.2%, the Banque de France said, revising its second-quarter estimate slightly up from 0.2% last month.

“After the decline in the first quarter, activity in the second quarter will show resilience, that is to say it is clear that the French economy will not be in recession,” said the chief economist. of the Banque de France, Olivier Garnier, during a press conference.

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The central bank based its growth estimate in part on the results of its monthly survey of 8,500 businesses in which executives indicated that activity should improve slightly in June in the services sector, be stable in the industry and fell back slightly in construction.

The share of industrial companies facing difficulties in the supply chain fell in May to 61% from 64% in April, while it increased in the construction sector to 55% from 54%.

With industrial firms under less pressure to secure inputs, 42% of sector executives said they raised selling prices in May, down slightly from 41% in April and were broadly flat in services at 24 %.

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Reporting by Leigh Thomas; Editing by Alison Williams

Our standards: The Thomson Reuters Trust Principles.

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