The French economy contracted 1.2 percent in the first quarter of 2009, after a 1.5 percent decrease of its Gross Domestic Product in the last quarter of 2008, the National Statistical Office INSEE announced on Friday.

France officially entered recession as a common definition of recession is two consecutive quarters of negative economic growth, according to the INSEE figures.

Data from INSEE showed that the French manufacturing continued to decline sharply in the first three months of 2009 with automobile production down 12.8 percent. Exports contracted 7.2 percent, while consumer spending growth stood at 0.2 percent.

French Economy Minister Christine Lagarde said in a statement following the INSEE report that French's GDP growth in 2009 is likely to drop by 3 percent, 1.5 percent lower than previous forecast, according to a French source.

The minister said France will have a "gradual economy recovery in 2010."