- Thomas Costerg, an economist at Standard Chartered Bank
The French economy expanded less than initially was expected, adding to concerns that the recovery may be too weak to help President Francois Hollande's government reduce unemployment, which is currently at a 15-year high, and improve the overall economic situation. Nation's gross domestic product rose 0.1% in the third quarter, compared to a 0.2% growth estimated on Nov.15. The moderate growth and a return to positive territory provided some comfort and confounded initial expectations that Europe's second largest economy may slip into recession in the last quarter of 2012. At the same time, imports dropped by 0.5%, while exports accelerated slightly by 0.6%.
"Given the poor outlook for France's growth in the coming months, it is difficult to see an improvement in labor-market data anytime soon," Thomas Costerg, an economist at Standard Chartered Bank in London, said in an e-mail. "For the moment, the only direction for France's unemployment rate is up."
"France has become a less open economy than its European peers over the last decade, which limits the economy's ability to rebound in the short term, and will constrain growth over the next few years," said Edward Gardner, an assistant director in the IMF's European Department.
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