France is headed back into recession for the second time in 3 years.

The Bank of France has predicted a 0.1% contraction in the economy for the 3rd quarter this year.

The second biggest economy European economy France has been struggling to recover as the Eurozone debt crisis rumbles on.

Unemployment is now running at nearly 10% of the French workforce.

Meanwhile the Bank of England has slashed its growth forecast for Britain which is also in recession.

It has cut its growth prediction from 0.8% to around zero for 2012.

The Bank of England governor admits recovery and rebalancing of the economy will be a long slow process.