German, French economies contract in final months of 2012

German, French economies contract in final months of 2012

PanARMENIAN.Net - The German and French economies both contracted in the final three months of 2012, figures have shown, according to BBC News.

Germany - the eurozone's largest economy - saw its GDP shrink by 0.6% as exports declined.

The French economy shrank by 0.3% in the fourth quarter. Both numbers were worse than forecast, Some economists have predicted France is heading for a recession - usually defined as two consecutive quarters of contraction.

However, France's central bank recently forecast that the economy would expand in the first three months of 2013.

The French President Francois Hollande is trying to make France more competitive by slashing government spending and relaxing labor regulations.

The German statistics office said: "Comparatively weak foreign trade was the decisive factor for the decline in the economic performance at the end of the year: in the final quarter of 2012 exports of goods declined significantly more than imports of goods."

All eurozone countries have been hit hard by the debt crisis.

 Top stories
“The European Union expects that this substantial assistance will lead to bold reforms over the next years,” Hristea said.
Over the 9 months of 2014, Ameribank's assets amounted to AMD 334 billion, taking it to the top of Armenia's banking system.
Sergo Karapetyan stated that exports of Armenian fruits (except fort apricots) and vegetables to Russia this year have doubled.
Among CIS countries, Azerbaijan was placed 60th, Russia 91st, Moldova 75th, Ukraine 88th, Kyrgyzstan 101st place.
Partner news