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Data shows euro zone growth stalling, France lagging and deflation a threat

Published on Jun 29, 2014 11:54 AM

PARIS (AFP) - Europe's fragile recovery is stalling, a batch of economic data showed this week, with analysts warning that France, with the euro zone's second-biggest economy, could be slipping into another downturn.

Even the euro zone's economic powerhouse Germany - whose performance is increasingly divergent from laggard France - is starting to show signs of slowing growth and posted the lowest inflation for four years at 0.9 per cent. This adds to concerns that the spectre of euro zone deflation is coming closer.

Just a month ago, EU Economic Affairs Commissioner Siim Kallas sounded the all-clear for the bloc's economic health, saying that a "recovery has taken hold". With Portugal joining Ireland in exiting a billion-euro bailout programme, and even Greece successfully raising money on the markets, the euro zone was looking to put its debt crisis behind it.

France lags

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