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France’s economy contracted marginally in 2012, owing to weak private consumption and investment. Gross capital formation weakened sharply from 7.8% growth in 2011 to 4.9% contraction in 2012, mainly due to weak investor confidence. Owing to a deceleration in disposable income and fiscal austerity measures, private consumption also contracted by 0.2% in 2012, following 0.3% growth in 2011. Although exports recorded a growth of 2.3% in 2012, this was down from 5.3% in 2011. The French economy is expected to contract again in 2013, followed by a modest recovery in 2014.