France’s Economy in Cark

This year’s first quarter reports have indicated that French economy has quailed by 0.2%.

This percentage is historical to France’s economy since it was the same case in 2012’s last quarter. Currently France’s business is lowering each day and unemployment seems to be on the rise.

This recession seems to sweep through the entire euro-zone for the sixth quarter. This is report is gotten from separate studies done across the 17 Euro-zone states. EU’s officer in the Statistics office confirmed the reports of the 0.2% fall in the economy, with 9 countries showing full signs of recession.

This recession however, doesn’t look to affect Germany (EU’s biggest Economy). Germany’s economy for the first quarter grew by 0.1%.

In a bid to lift the economy, ECB decided to cut interest rates to 0.5% which is by record the lowest so far.

The recession comes only after a year since the inauguration of President Francois Hollande. Questions remain of how he looks to transform the economy with over 10% unemployment which is projected to rise over a few months to come.

France’s deficit budget is likely to remain above 3%, which is EU’s target for GDP. Experts indicate it could be about 3.9% by the end of this year.

Unemployment is expected to reach 12.2%, this is better in comparison to other Euro-zone figures. Greece and Spain of current are at about 27%.

Government is devising ways aimed at curbing the situation through a legislation. Among these is the labor laws reformed this week.  The reforms made are to lessen the process of switching jobs by employees and companies to demote employees.

While other economies in Europe are struggling, France’s recession is not the worst though the pace at which it is regaining is way too slow and normal business is likely to take a little longer to be restored.