French growth forecast slashed as economic woes continue

France has slashed growth expectations for next year in a move which will boost fears about the lack of economic activity in Europe.

In yet another negative revision of its growth outlook for next year, France now expects GDP growth of 1% in 2012, down from 1.75%. Despite the revision, French president Nicolas Sarkozy said the 1.75% growth expected this year would be achieved, according to the Press Association. However, the data will cast more doubts on whether the eurozone can continue to function in its current state. Larger economies such as France and Germany are expected to shoulder the burden caused by flagging peripheral economies, but are struggling to generate sufficient growth themselves. Yesterday...