France under pressure as growth stalls in Q2

France has reported annualised GDP growth of zero in the second quarter, raising concerns over the government's ability to meet its financial targets.

The flat growth rate between April and June was below expectations of a 0.3% rise and down from a 0.9% increase in the first quarter of the year. The figure was driven by a fall in household expenditure, which was down 0.7% from the first quarter. A 3.1% rise in import growth seen in the first quarter was not sustained between April and June, with import growth contracting by 0.9% over that period. Finance minister Francois Baroin told French radio the nation is still on course to meet its GDP and deficit reduction targets for the year. The government is forecasting a 2% growth rat...