French Industrial Production Shrinks Again in June
TEHRAN (Tasnim) - French industrial production continued to decline in June, widening the economic gap with Europe's largest economy, Germany, and raising concerns about its ability to emerge from recession.
France's national statistical agency, INSEE, said in a statement Friday that industrial production shrank 1.4 percent from a month earlier, AP reported.
That followed a 0.3 percent monthly drop in May. Within manufacturing, steep declines were recorded in the food and car industries.
France's figures stand in stark contrast to Germany, where industrial production grew 2.4 percent in June.
This is bad news for French President Francois Hollande. He's promised to reverse the rise in unemployment by the end of the year, but that is looking increasingly unlikely.
Unemployment hit 10.8 percent in the first quarter, and some economists say it won't peak until at least next year.
France's weak economy has raised concerns even in the US. Earlier this week, Dallas Federal Reserve President Richard Fisher said in an interview with German newspaper Handelsblatt that he was worried about the country, saying the financial risks there shouldn't be underestimated.