Paris - Kuna
The French economy had zero Gross Domestic Product (GDP) growth in the second quarter of the year, after a surprising spurt of 0. 9 percent in the first three months, the National Statistics Institute (INSEE) said Friday. The zero growth is a blow to the government which has projected the French economy will expand by at least 2.0 percent for all of 2011. INSEE said that a decline in household consumption and fixed investment, combined with a drop in imports and stagnating exports, had contributed to the weak economic performance in the second quarter. French Finance Minister Francois Baroin, speaking on \"RTL\" radio, said that although the figures were a small disappointment, he remained \"confident in France\'s fundamentals\" and that the 2.0 percent growth target would be reached this year. Separately, INSEE did report good news in that French July inflation fell 0. 4 percent and annual inflation rates are low at 1.9 percent. The French Stock Market has been battered in the past month because of concerns over European debt problems and financial institutions\' exposure to weak economies in the Eurozone. The latest economic figures are unlikely to reassure investors here on the health and rating of the French economy, which has been the target of downgrade rumours this week.