French Unemployment To Worsen In 2012, Insee Says

Unemployment in France is likely to increase further this year due to weak economic growth, the statistical office Insee said Tuesday.

Due to the low level of growth, the unemployment rate should continue to rise, reaching 10.3 percent in France in the fourth quarter, Insee said.

Meanwhile, a report from the labor ministry showed Tuesday that French unemployment rose 1.2 percent month-on-month to 2.922 million in May.

Insee said the French economy will remain stable in the second quarter. The GDP growth looks set to pick up slightly in the second half with the GDP rising 0.1 percent in the third quarter and 0.2 percent in the fourth quarter.

Overall domestic economic activity will remain sluggish in 2012, the statistical agency said. Exports are expected to accelerate somewhat under the effect of renewed world growth and the previous
depreciation of the euro. Domestic demand should also pick up moderately.

In Eurozone, Germany should keep growing while Spain and Italy remain in recession, the statistical office said.