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
Cars that sold for millions at the Scottsdale auctions These were the highest prices paid for collectible cars -- and a bus -- at the Scottsdale auto auctions. More
The best of SkyMall This catalog is always packed with ridiculous items that we just can't live without. More
Blue collar entrepreneurs These five entrepreneurs took their blue collar experience and used it to launch innovative businesses. More

Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2015 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2015. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2015 and/or its affiliates.