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Although the French economy showed signs of improvement in the second quarter, the outlook for the second half of 2009 remains uncertain. Industrial companies, especially those responsible for manufacturing, are obviously not willing to risk investment. According to the quarterly survey data recently released by the French National Institute of Statistics and Economics, the investment in French manufacturing companies may shrink by 23% this year, which is the year that the survey has been shrinking the most. It is reported that only the economic crisis in the early 1990s, the actual investment in the French manufacturing industry shrank by 20%.
In the second quarter of this year, France’s gross domestic product “accidentally†increased by 0.3% from the previous month. However, even the optimistic French government has not raised its economic growth forecast and believes that the French economy will still shrink by 3% in 2009. Analysts pointed out that the economic outlook is uncertain and the unemployment rate is still rising. Many French companies are reluctant to risk investment, but continue to reduce their inventory or maintain current production levels.
In the second quarter of this year, France’s gross domestic product “accidentally†increased by 0.3% from the previous month. However, even the optimistic French government has not raised its economic growth forecast and believes that the French economy will still shrink by 3% in 2009. Analysts pointed out that the economic outlook is uncertain and the unemployment rate is still rising. Many French companies are reluctant to risk investment, but continue to reduce their inventory or maintain current production levels.
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