French 2007 growth 'close to' two percent

14th September 2007, Comments 0 comments

14 September 2007, PARIS (AFP) - The governor of the French national bank Christian Noyer said Thursday he expected France to achieve economic growth of "close to" two percent this year and 2.0-2.5 percent in 2008.

14 September 2007

PARIS (AFP) - The governor of the French national bank Christian Noyer said Thursday he expected France to achieve economic growth of "close to" two percent this year and 2.0-2.5 percent in 2008.

"For 2007, we had a forecast of close to two percent, which is the most likely," Banque de France (BdF) head Noyer told LCI television. "But that supposes that we have good growth in the second half."

Growth figures released last month for the second quarter showed the French economy, the eurozone's second largest, had expanded by 0.3 percent, half of what had been expected, after growing 0.5 percent in the first quarter.

This was bad news for the right-wing government of new president Nicolas Sarkozy, which is banking on stronger growth to finance a 13.6-billion-euro (19-billion-dollar) package of tax breaks adopted by parliament in July.

Noyer added that the upper end of the government's 2.0-2.5 percent growth forecast for 2007 would be very difficult to achieve.

This "would assume a really extremely booming growth at the end of the year," he said.

AFP

Subject: French news

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