The stalled GDP growth follows an exceptional 0.9% surge in the first quarter, which was boosted by businesses increasing their stocks. Such feather hair extensions activity failed to contribute to growth in the second quarter. The slowdown is another blow to France at the end of a week when markets have been plunged into turmoil, partly due to investors questioning France's triple-A rating after the U.S. was downgraded last week by Standard & Poor's Corp. There have also been swirling concerns about the health of the large French banks.
Data released Friday showed the French economy failed to grow in the second quarter from the first as consumers sharply cut spending, complicating government plans to reduce its deficit as financial markets question its prized triple-A credit rating.
Wild swings in bank shares prompted France's stock feather hair extensions wholesale market regulator, along with those in Belgium, Italy and Spain, to slap restrictions on short selling of financial shares effective Friday.If the French economy fails to expand at the 2% pace the government is expecting for this year, the official target of bringing the deficit down to 5.7% of GDP from 7.1% last year could be compromised. The government insists it will meet its deficit targets come what may, meaning it may need to embark on further spending cuts if growth disappoints.
Gross domestic product in the euro zone's second-largest economy was flat in the second quarter after a 0.9% expansion in the first quarter from the end of 2010, national statistics agency Insee said. The figure dashed expectations of a 0.3% expansion, fueling concerns the government may not have the breathing space to meet its deficit targets. French consumer spending, the traditional growth driver of the domestic economy, had held up during the recession in 2009. Consumer spending was supported through the economic downturn by a government-funded car-scrapping prada handbags 2011 scheme, which was completely phased out at the end of 2010.
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