The euro zone core nation of France will find itself in recession next year despite currently enjoying robust export numbers, according to Jennifer McKeown, European economist at Capital Economics.
"We still see both Germany and France slipping into recession in 2013," she wrote in a research note.
This is due to export numbers that they believe will decline, despite getting better in the short term, as demand from the U.S. and Asia falls away.
"While exports to elsewhere in the EU have fallen, German exports to the U.S. rose by roughly 15 percent in the year to (the second quarter). France posted an even stronger annual increase of about 20 percent," McKeown said.
On the whole, France have had a 0.2 percent rise in exports which leaves the annual growth rate for exports at 3.9 percent, which the research company says is strong compared with previous releases.
A weak euro is another reason for the firm nudging up their forecast for French GDP (Growth Domestic Product) this year from -0.5 percent to -0.3 percent.
These estimates come after the country's INSEE statistics agency reported on Tuesday that French GDP data had not grown in the second quarter, making it the third quarter in a row that France had shown zero growth.
The numbers beat Capital Economics' previous expectations. But the firm sees falling demand from the U.S. as the catalyst for future decline in exports, leading to negative growth for France.
"We have recently revised down our forecast for U.S. GDP growth next year from 2.5 percent to 2.0 percent," they said.
"That's not a terrible performance, but taken together with what we believe is a truly dismal outlook for the euro zone's periphery, it paints a very bleak picture."
While it could be bad for both Germany and France, it's France that relies more on trade links with the rest of the euro zone.
"Consumers in the core could spend a bit more. But there is no sign of the revival that would be needed to offset the weakness of exports," McKeown argued.
More From CNBC
