Home.co.uk
Home.co.uk

News: Final growth spurt for French economy

Investors in France will relieved to hear that the country's economy has bounced back in the last three months of 2006 after a worrying performance in the preceding quarter, reports AFP...

This month INSEE - France's national statistics - said that, after stagnating in the third quarter, the French economy will grow by 0.9 per cent in the last three months of 2006.  This last gasp growth will round up economic growth for the year up to 2.1 per cent.

Eric Dubois, an economist at INSEE, tried to reassure investors by claiming that the slowdown at the end of the summer was not expected and should not repeat itself in the near future despite gloomy reports of a global economic slowdown in the coming year.  The French economy will be bolstered by strong domestic demand coupled with lower taxes and weakening energy prices over the coming months, Dubois said.

This more optimistic outlook chimes with the key findings of a report released last month by the Organisation of Economic Co-operation and Development (OECD).  The report stated that "The French economy is likely to recover and continue growing slightly faster than potential over the forecast period."

The OECD report predicted that France's GDP will grow by 2.2 per cent in 2007 before rising slightly to 2.3 per cent the following year.


 

Back to: News Index