5 of 6
BACKNEXT
France: Better than expected
France: Better than expected
GDP: 1.4%*
Inflation: -0.2%
Unemployment: 9.8%
Markets: 25.2%
Interest rate: 1%

France's economy entered its recovery in the second quarter, an encouraging sign that led the country to revise its long-term forecasts higher this week.

The country's $37 billion economic stimulus program helped bring the French economy back to positive growth for the first time in more than a year. Though French economic minister Christine Lagarde said the economy will likely contract by 2.25% this year, that's less than the government's previous forecast of 3%.

Lagarde said the economy will continue to grow throughout the remainder of the year, but that the growth will be tepid.

That's because economists expect that unemployment, which rose sharply during the recession, will remain a problem for quarters to come. Last month, France recorded its worst quarterly labor reading in four years.

France's finance minister also said this week that the country remains in a "extremely vulnerable period," given its forecasts that its deficit will rise to between 7% and 7.5% of GDP next year. That's more than double the 3% limit set by the European Union.

NEXT: United Kingdom: Signs of life
Last updated September 24 2009: 11:03 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Source: IMF, national statistics offices, central banks, CAC
*Figure does not match chart because it is given in an annualized rate
More Galleries
7 quirky luxury products for the super rich Take a look at some of the most unusual luxury products being marketed to the top 1% in Monaco, including a rotating sunbed, hand-made wooden skis and fur coats for dogs. More
Five things to know about Putin's Russia An economic crisis, Western sanctions and a comeback currency: What's going on in Russia? More
9 up-and-coming collectible cars They're relatively cheap now but these models have already caught collectors' eyes and are expected to increase in value in years to come More

Special Offer