The Bank of France has forecast that the French economy will shrink by 0.6% in the first quarter of this year, signalling a formal recession.
If the economy does contract as the central bank expects, the economy will have shown two quarters running of negative growth which marks recession.
The French economy contracted in the second quarter of last year but achieved growth of 0.1% in the third quarter, narrowly averting recession.
Economists, including government economists, expect data for the fourth quarter to show a clear contraction. The official statistics institute INSEE is to publish its first data for growth in the whole of 2008 on Friday.
Economy Minister Christine Lagarde said last week that conditions in the fourth quarter were the worst 'ever seen'.
