French economy avoids recession with 0.3% quarterly growth

Feb 14 – The French economy grew by 0.3% in the last three months of 2013, government figures indicate.

 

At the same time, the country's INSEE statistical office reported that growth was zero in the third quarter of 2013, revised up from an initial estimate of a 0.1% contraction.

 

The figures mean that the world's fifth-largest economy has escaped falling back into recession.

 

Over the whole of 2013, the French economy grew by 0.3%.

 

Meanwhile, the German economy also notched up higher growth in the October-to-December period.

 

The country's GDP expanded by 0.4% in the final quarter of 2013, after seeing growth of 0.3% in the previous three months, according to the federal statistics office, Destatis.

 

Destatis said the figures were boosted by exports and capital investment, but there were "mixed signals" from domestic demand, with a drop in household spending.

 

According to preliminary figures, Germany's economy grew by 1.3% in 2013, the statistics office said.

 

In general, the German figures were better than analysts had been expecting.

 

"Germany remains the economic stronghold of the eurozone," said economist Carsten Brzeski of ING.

 

"In fact, this morning's data was one of those positive surprises the eurozone has seen too seldom over the last few quarters. Let's hope it won't be the last one."

 

BBC