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French economy stalled in second quarter

French economy stalled in second quarter, which is interpreted as a sign of weakness, even before Europe to feel the effects of the British referendum on leaving the European Union. The gross domestic product (GDP) remained unchanged in the three months to end-June compared with revised growth of 0.7% in the previous quarter. The economists had expected an increase of 0.2%, which seriously affected the markets and trade.

In France, first quarter growth had been supported by people booking accommodation and buying tickets for the Euro 2016 football championship. But growth stalled in the April-to-June period with the Euro 2016 factor stripped-out and after a fall in food spending. The lack of expansion in the second quarter was disappointing. However, it stuck to a forecast of 1.5% GDP growth for the full year.

However, the French economy shows a good picture of the industry before the referendum for Brexit. So far, research has shown that the influence of the British referendum on the wider European economy remains rather muted. The economic confidence in the euro zone unexpectedly improved in July by the European Commission on Thursday reported a rise in its index of business and consumer confidence to 104.6 points from 104.4 in the previous month.

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