PARIS: France’s national statistics institute Insee has said it expects the country’s economic growth to accelerate to 1.6 percent this year.
In a report released on Thursday, Insee said it expects the country’s jobless claims to fall too due to improving investment and household expenditure.
Insee said it expects the French economy to grow by 0.3 percent in the second and third quarter, followed by a growth of 0.4 percent in the last quarter of the year. This is expected to lead to a full-year growth above the official target of 1.5 percent.
Low energy prices and cheaper borrowing costs would bolster households’ consumption and corporate investment, which together account for 76 percent of the gross domestic product, according to the report.
Insee sees the full-year household demand increasing by 1.6 percent, the highest level since 2010, while corporate investment is expected to hit an eight-year high of 4.7 percent.
The improving economic growth, coupled with tax cuts, is expected to push jobless claims to their lowest level since 2012.
