French Eco Affects Euro
France’s weak economic growth has affected the Euro to dissent slightly from its current post in the foreign exchange market. Data released by HSBC analysts showed that France’s poor export performance and slump in consumer spending resulted in the economy’s almost-stagnant growth. The decrease in industrial and manufacturing production in France this May were also factors to the slow economic turn.
As soon as news of these data on France reached the business scene, the Euro went down to almost US$1.26. The data also revealed that France first quarter GDP grew by only 0.2% compared to the last quarter of 2004 despite predictions that 0.5% growth could be attributed to the GDP.
Household borrowing or consumer credit was also pale and was reported at its lowest since 1999 to rise by only 0.4 billion for the month. Increase in oil revenues’ tax collection to be implemented by the French government in the following months is anticipated to be another burden for consumers and businesses alike.
Source: Forex – Euro Eases Slightly As France Posts Weak Economic Growth, Forbes.com
As soon as news of these data on France reached the business scene, the Euro went down to almost US$1.26. The data also revealed that France first quarter GDP grew by only 0.2% compared to the last quarter of 2004 despite predictions that 0.5% growth could be attributed to the GDP.
Household borrowing or consumer credit was also pale and was reported at its lowest since 1999 to rise by only 0.4 billion for the month. Increase in oil revenues’ tax collection to be implemented by the French government in the following months is anticipated to be another burden for consumers and businesses alike.
Source: Forex – Euro Eases Slightly As France Posts Weak Economic Growth, Forbes.com
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