PARIS: The French economy is forecast to grow more than previously estimated in the second quarter of 2017, the statistical office INSEE reported.
Gross domestic product is expected to climb 0.5 percent in the second quarter instead of 0.4 percent estimated in December. The projection for the first quarter was kept unchanged at 0.3 percent.
Prospects have clearly improved for companies and they are likely to be ready to invest again, the statistical agency said.
In addition to this, exports should maintain the impetus they picked up at the end of 2016, said INSEE. Foreign trade should thus contribute much less negatively to growth than in 2016.
According to INSEE, with purchasing power gains being reduced by the upturn in inflation, French households are forecast to slow the rate of their consumption a little while saving a little less.
“The annual growth overhang in gross domestic product for 2017 should be +1.1 percent,” INSEE said.
The economic growth and the effects of policies to boost its employment intensity should be enough to generate employment once again. The jobless rate is expected to continue falling slowly, to 9.8 percent in mid-2017 from 10 percent at the end of 2016.
