French economy to shrink 2.5%
PARIS - THE French government expects the economy to shrink by 2.5 per cent this year, Prime Minister Francois Fillon said Wednesday, updating the finance ministry's previous estimate of 1.5 per cent.
'Two point five is the figure which today looks probable but what I'm looking out for is the moment when things will begin to turn around,' Mr Fillon told France Inter radio, confirming a negative growth estimate by the French central bank.
Mr Fillon's admission brought the government's estimate closer to that of independent experts, who viewed the finance ministry's prediction of a 1.5 per cent fall in Gross Domestic Product in 2009 as optimistic.
In March, the Organisation for Economic Cooperation and Development, for example, predicted that French GDP would fall by more than three percent this year as the effects of the global financial crisis take their toll.
'We are planning on the basis of a recovery, which will no doubt be slow, in 2010,' Mr Fillon said, promising that the government would not seek to raise taxes until the economy was firmly back on track.
Monday, April 27, 2009
How Can France ETF Overcome Economic Unrest?
The French economy, and related exchange traded fund (ETF), is in the throes of a recession. But some companies are working to mitigate the pangs.
French Prime Minister Francois Fillon admits that their economy will “probably” shrink by 2.5% this year, according to Forbes. Figures show that the French economy is contracting at its fastest rate in more than 30 years.
Disgruntled workers have grown increasingly antagonistic, detaining managers and impeding production, after recent layoffs and cut backs. Anita Elash for Marketplace reports that one of France’s richest men, Francois Henri Pinault, is being held hostage by workers upset by plans to lay people off at his chain of stores. Bossnappings were common in France in the 1970s. Pinault is one of several lately - there have been bossnappings at 3M, Sony and Caterpillar, as well.
The government has promised to keep taxes low in hopes of easing the consumer’s burden. It is now projected that recovery may occur next year, but at a slow crawl.
In the widely-known French luxury industry, which accounts for around 2.8% of annual exports, companies are holding onto traditions and quality, but there is a need to adapt so as to stay competitive in today’s markets, write Katie Catillaz et. al. for Knowledge@Wharton.
The French economy, and related exchange traded fund (ETF), is in the throes of a recession. But some companies are working to mitigate the pangs.
French Prime Minister Francois Fillon admits that their economy will “probably” shrink by 2.5% this year, according to Forbes. Figures show that the French economy is contracting at its fastest rate in more than 30 years.
Disgruntled workers have grown increasingly antagonistic, detaining managers and impeding production, after recent layoffs and cut backs. Anita Elash for Marketplace reports that one of France’s richest men, Francois Henri Pinault, is being held hostage by workers upset by plans to lay people off at his chain of stores. Bossnappings were common in France in the 1970s. Pinault is one of several lately - there have been bossnappings at 3M, Sony and Caterpillar, as well.
The government has promised to keep taxes low in hopes of easing the consumer’s burden. It is now projected that recovery may occur next year, but at a slow crawl.
In the widely-known French luxury industry, which accounts for around 2.8% of annual exports, companies are holding onto traditions and quality, but there is a need to adapt so as to stay competitive in today’s markets, write Katie Catillaz et. al. for Knowledge@Wharton.
French unemployment 'rises again'
French unemployment rose between 60,000 and 70,000 last month, Economy Minister Christine Lagarde has warned.
Speaking before the release of the official data for March, she said the figure was still an improvement on the 79,900 who lost their jobs in February.
She said that while "not good news", the latest data was "not catastrophic".
France's unemployment rate is currently running at 8.2%, one of the highest in Western Europe. It is expected to go above 10% by the end of this year.
Despite passing a 26bn euro ($34bn; £23bn) economic stimulus package in February, France remains mired in recession.
The government expects the economy to shrink 2.5% this year, but hopes to see it recover in 2010.
Young people have been hit particularly hard by the downturn, with unemployment among the under-25s reaching 21.2% at the end of last year.
French unemployment rose between 60,000 and 70,000 last month, Economy Minister Christine Lagarde has warned.
Speaking before the release of the official data for March, she said the figure was still an improvement on the 79,900 who lost their jobs in February.
She said that while "not good news", the latest data was "not catastrophic".
France's unemployment rate is currently running at 8.2%, one of the highest in Western Europe. It is expected to go above 10% by the end of this year.
Despite passing a 26bn euro ($34bn; £23bn) economic stimulus package in February, France remains mired in recession.
The government expects the economy to shrink 2.5% this year, but hopes to see it recover in 2010.
Young people have been hit particularly hard by the downturn, with unemployment among the under-25s reaching 21.2% at the end of last year.
French Fin Min: Economy Showing Positive Signs
PARIS (Dow Jones)--French finance minister Christine Lagarde said Wednesday that the French economy was starting to show positive signs.
"We have some positive signs," Lagarde said during a press conference, citing the example of the car manufacturing industry that has benefited from the European governments' car scrapping schemes, and also the real estate industry.
Lagarde also confirmed the comments made earlier by French prime minister Francois Fillon who said that the economy is likely to contract 2.5% in 2009 and the government is expecting a slow recovery in 2010.
Speaking on French radio France Inter, Fillon said 2009 will be a year of strong recession, adding that France should nevertheless fare better than its peers.
Also, French budget minister Eric Woerth said Wednesday there are elements showing a recovery is on the way, though these signs remain quite modest for now.
Speaking in an interview with French radio Europe 1, Woerth cited as examples the fact that foreign trade has started to pick up while the fall in industrial production has slowed.
PARIS (Dow Jones)--French finance minister Christine Lagarde said Wednesday that the French economy was starting to show positive signs.
"We have some positive signs," Lagarde said during a press conference, citing the example of the car manufacturing industry that has benefited from the European governments' car scrapping schemes, and also the real estate industry.
Lagarde also confirmed the comments made earlier by French prime minister Francois Fillon who said that the economy is likely to contract 2.5% in 2009 and the government is expecting a slow recovery in 2010.
Speaking on French radio France Inter, Fillon said 2009 will be a year of strong recession, adding that France should nevertheless fare better than its peers.
Also, French budget minister Eric Woerth said Wednesday there are elements showing a recovery is on the way, though these signs remain quite modest for now.
Speaking in an interview with French radio Europe 1, Woerth cited as examples the fact that foreign trade has started to pick up while the fall in industrial production has slowed.
France to press EU to do more on IMF funding
PARIS, April 22 (Reuters) - France wants the European Union to give more than the $100 billion in extra funding than it has already pledged to the International Monetary Fund (IMF), a finance ministry official said on Wednesday. G20 leaders agreed on April 2 to give the IMF an additional $500 billion for economic rescue operations, with the 27-nation European Union committing to contribute $100 billion of that. French Economy Minister Christine Lagarde will write to her EU partners proposing they go beyond their initial offer, said the official, noting $160 billion would be an amount that corresponded to the EU's weight within the IMF.
PARIS, April 22 (Reuters) - France wants the European Union to give more than the $100 billion in extra funding than it has already pledged to the International Monetary Fund (IMF), a finance ministry official said on Wednesday. G20 leaders agreed on April 2 to give the IMF an additional $500 billion for economic rescue operations, with the 27-nation European Union committing to contribute $100 billion of that. French Economy Minister Christine Lagarde will write to her EU partners proposing they go beyond their initial offer, said the official, noting $160 billion would be an amount that corresponded to the EU's weight within the IMF.
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