France predicts two percent growth in 2006

23rd March 2006, Comments 0 comments

PARIS, March 23, 2006 (AFP) - The French economy is expected to grow 0.6 percent in the first quarter this year and 0.5 percent in the second and has the potential to expand by two percent for all of 2006, the national statistics institute INSEE predicted Thursday.

PARIS, March 23, 2006 (AFP) - The French economy is expected to grow 0.6 percent in the first quarter this year and 0.5 percent in the second and has the potential to expand by two percent for all of 2006, the national statistics institute INSEE predicted Thursday.

It said growth would be driven by positive global economic circumstances and solid domestic demand.

French Finance Minister Thierry Breton on Wednesday told the National Assembly the government foresaw a 0.6 percent expansion in the first three months of the year and growth of between 2 and 2.5 percent for all of 2006.

Private economists are forecasting growth of 1.9 percent this year after 1.4 percent in 2005.

INSEE also predicted a decline in French unemployment from 9.6 percent of the workforce at the end of 2005 to 9.2 percent by the middle of 2006. It said an estimated 110,000 jobs should be created in the first half of the year.

Copyright AFP

Subject: French news

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