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| Version 1 | Version 2 |
|---|---|
| French and German economies contracted at end of 2012 | French and German economies contracted at end of 2012 |
| (35 minutes later) | |
| The German and French economies both contracted in the final three months of 2012, official figures have shown. | The German and French economies both contracted in the final three months of 2012, official figures have shown. |
| Germany - the eurozone's largest economy - saw its gross domestic product (GDP) shrink by 0.6% as exports declined. | |
| That was the deepest contraction since the first three months of 2009 - the height of the financial crisis. | That was the deepest contraction since the first three months of 2009 - the height of the financial crisis. |
| The French economy shrank by 0.3% in the fourth quarter. Both numbers were worse than forecast. | |
| Some analysts have predicted France is heading for a recession - usually defined as two consecutive quarters of contraction. | Some analysts have predicted France is heading for a recession - usually defined as two consecutive quarters of contraction. |
| However, France's central bank recently forecast that the economy would expand in the first three months of 2013. | However, France's central bank recently forecast that the economy would expand in the first three months of 2013. |
| The French President Francois Hollande is trying to make France more competitive by slashing government spending and relaxing labour regulations. | The French President Francois Hollande is trying to make France more competitive by slashing government spending and relaxing labour regulations. |
| 'Outlook promising' | 'Outlook promising' |
| The German statistics office said: "Comparatively weak foreign trade was the decisive factor for the decline in the economic performance at the end of the year: in the final quarter of 2012 exports of goods declined significantly more than imports of goods." | The German statistics office said: "Comparatively weak foreign trade was the decisive factor for the decline in the economic performance at the end of the year: in the final quarter of 2012 exports of goods declined significantly more than imports of goods." |
| But economists remain upbeat about the outlook for Germany. | But economists remain upbeat about the outlook for Germany. |
| "This is a temporary period of weakness in the German economy rather than the beginning of a long period of stagnation or even a recession " said Andreas Rees, chief German economist at the bank Unicredit. | "This is a temporary period of weakness in the German economy rather than the beginning of a long period of stagnation or even a recession " said Andreas Rees, chief German economist at the bank Unicredit. |
| He added: "The outlook is very promising. The chances that the economy will return to growth at the beginning of this year are very good." | He added: "The outlook is very promising. The chances that the economy will return to growth at the beginning of this year are very good." |
| That sentiment has been back up by recent surveys. January's closely watched business confidence survey for Germany hit its highest level since before the eurozone crisis. | |
| Eurozone purchasing managers' index (PMI) surveys for January also indicated the worst may be over. Germany, Spain and Italy all showed signs of stabilisation - although in France the downturn deepened. | |
| The growth figure for the whole eurozone is out later and is expected to show the recession in the region worsening. GDP is forecast to contract by 0.4% - which would be the third consecutive quarter of contraction. |