French Economy Contracts in 3Q
France's economy contracted by 0.1 percent in third quarter due to weakened exports and lagging business investment, official data showed on Thursday, dealing a further blow to unpopular Socialist President Francois Hollande.
The drop comes after the economy grew by an unexpected 0.5 percent during the second quarter, pulling the eurozone's second-largest economy out of a shallow recession.
The contraction for July to September stemmed from a 0.6 percent drop in business investment and a 1.5 percent slide in exports, said the national statistics agency INSEE.
The Socialist government, struggling with rising job losses and a mounting deficit, was quick to dismiss the bad news.
"This is not a recession, it is not an indication of decline," Finance Minister Pierre Moscovici told French radio moments after the figures were released.
Source: Agence France Presse
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